http://www.johnson-matthey.ch/download/200707_market_report.pdf

This means two things. One that Newmont thinks gold price will continue to go up higher than it costs to produce. Second, that Newmont thinks there is no longer a need to insure against the risks of mining gold.

So if that is the case, then it seems to me that more people will enter the gold market to produce more gold since the price of gold outweighs the risk of mining it. The benefits Newmont has are the infrastructure, mining rights and experience to mine gold already. It seems to me the only appreciation that can come now for gold is that which is needed to allow people to overcome the competitive advantage of Newmont or any other unhedged gold producer.

Another consideration to consider is how new research will affect the cost of producing gold. For example, recent research shows that bioprocessing of gold using the gram negative bacteria, Ralstonia metallidurans, may be possible:

http://www.livescience.com/strangenews/060718_gold_bacteria.html

Anyway, if the economy were to fall apart, gold has limited practical use. It would be better to have farm land to grow crops or a weapon to defend yourself from the ensuing effects of anarchy.

We all would like to know what that next big thing is going to be – Maybe gold and/or commodoties will be the ticket?

Welcome to the February 1, 2008 edition of Carnival of Everything Finance.
We had over 120 really good articles submitted for this edition. Unfortunately I could not include all of them.
Earning Money
Matthew Paulson presents What to Do When You C…..