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RE: Are the metals on the move?

in #steemsilvergold6 years ago

I wonder how the price influences supply? I went on this crazy mine tour a few years ago and it was basically saying gold was easy to find just laying about in the old days. Then all of that was found and people had to dig deeper for gold. When gold price is low, mining is cost prohibitive. Running the equipment, digging deeper for small pieces... not worth the time or effort. If moreaffordable mining tech comes out or if the price of gold is high it is worth the extra effort to dig more. Assuming this is the case with all metals. I am not sure where I am headed with this but it was super interesting. ☺️

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You’re exactly right though! If price is low the mines don’t have an incentive to mine it which lessens supply which drives up. If the price is high it incentivizes miners to mine it creates an over supply and price typically falls.