Gold output to dip by 17 percent

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• Concerned 10 years ago

  Gold in 2003 were just under $400. After the wars on terror, economies failing, etc., prices shot up about $1,000 and have remained at these unprecedented highs for many years. Prices are now falling back to the pre-recession ...
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  Gold in 2003 were just under $400. After the wars on terror, economies failing, etc., prices shot up about $1,000 and have remained at these unprecedented highs for many years. Prices are now falling back to the pre-recession levels, so please explain HOW prices RETURNING to NORMAL signals a calamitous disaster/threat for the mining industries. If anything, these companies should be grateful for the great times they got to enjoy.
  
  Why the price drop should result in huge redundancies in labour, or even huge falls in production concerns me. If anything, employment and production levels in Ghana should fall back to levels they were at 6/7 years ago. If the companies failed to properly plan for a return to normal commodity prices, then that was their own shortsightedness.
  
  Truth: When prices and profits started climbing, these companies decided to raise salaries. Now that profits are falling, they are finding it hard to reduce their costs, hence the problems they're facing. Interesting enough, this was the same problem European countries faced when the whole economic disaster started - increase in wages/costs met an unexpected fall in demand/production.

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• akosua 10 years ago

  paaaaaaaaaaaay!

  paaaaaaaaaaaay!

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