CPM Group’s Jeffrey Christian discusses the Risk-Free Gold Price. As gold prices rise and fall, there are times where the price falls so low that it is no longer profitable to mine at many operations. The Risk-free gold price is what the price of gold might fall to if there were no major risks in the world. Jeff discusses why it is important, and how mining companies use it to determine long term production and development plans. He also discusses the concept that even at risk free gold prices the world would remain well supplied with gold.
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