“Modern mining executives have no appreciation of gold’s unique characteristics, so they treat it as a base metal” that’s according to Daniel Oliver, research analyst at Myrmikan Research who published a report on the economic’s gold miners earlier this week.
Most Gold Miners Don’t Understand Gold
The logic behind the statement above is based on the ideal of gold has a negative discount rate. Over time gold has maintained its value, but due to improvements in technology and monetary inflation, the cost of producing gold has fallen. Gold's relative stability of value in the face of technological process forces the value of other goods to fall regarding gold time. Oliver writes that since 1784 “copper priced in gold...
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