Conclusions

Canada sold its gold for ~$400/oz. U.S. in 1994. The Canadian dollar was not trading at parity as it is now. There was a hefty 30% premium attached to any ounce of gold sold at the time if the money is converted to Canadian dollars. But I would bet this money is still sitting in U.S. dollar reserves at the central bank.

If you use Tom's Inflation Calculator and the shadowstats option, $400 U.S. in 1994 had the purchasing power of over $1800 now. The lights will come back on for gold mining companies once gold prices average above a certain amount, probably the average of nominal gold prices through the 80's and 90s', adjusted once again for inflation.

Gold is the only metal that will price in whatever currency and in inflation adjusted amounts, whereas oil and copper have not superceded inflation since the onset of the financial crisis. Should currency values decline and neither oil nor copper rise, not being capable of storing value, this aught to show up in Net Present Value of oil and copper producers, as returns fall directly behind inflation. The cost of capital for commodities producers is still very far above benchmark rates.

A rough estimate of $2200/oz. represents an inflation adjusted average of long term nominal averages of $400/oz. through that period.

So you can assume that once gold averages above this amount, then gold miners aught to reap the benefits. Its ironic that in the Uranium markets, you did not require any production whatsoever, just a few drill holes. That didn't work for GBN.V, obviously.

-F6