I was trying to get another chart to paste in but it failed no matter how I did it.

It shows more clearly that mine production has decreased since 1999 while the average price has increased and the point is made that if the price was increasing so much why is production not increasing?

The other interesing part on the chart was showing the increase in Scrap gold entering the market. Who hasn't seen the commercials offering to buy your scrap jewelry.

My main thought in this discussion is as semismart stated.. we have not yet begun to see demand from banks / countries

then there will be the Joe public demand for Gold as they realize the paper in their wallet won't pay the bills anymore

and if production has been decreasing that means every ounce out of the ground will have a buyer and it won't be enough.

Overall .. hard times, but good for those who grab ahold now. If the results are as positive as reported then GNH will definitely attract attention

example from a report.

Here are some examples of coin demand straining current supply that you may find surprising....

• The Rand Refinery in South Africa, the world’s largest, forecasts it’ll sell 1 million Krugerrands this year. Sounds like a lot – until you consider that from 1974 to 1984, they sold 2.6 million ounces per year. And that was when the world’s population was roughly 35% lower than today.
• The U.S. Mint has had difficulty meeting heightened demand when annual sales are only slightly above historical averages.
• So far this year, gold production in China is up 5%, but demand for physical gold is up 30%.
• During two tense weeks of the Greek crisis in April/May, the Austrian Mint, one of the world’s five largest, sold a quarter million ounces, an amount that exceeded all of first-quarter sales. And Pro-Aurum, one of Europe’s largest online precious metals traders, had to temporarily suspend sales due to a backlog of orders and insufficient supply. If Greek-style sovereign debt fears spread to other nations – something looking all but assured – rolling bullion shortages could resurface.

I'm still learning and figuring out my strategy, I have done some physical silver buying due it's cost in ratio to my bank account (lol)

If you like readiing good resource material

http://www.caseyresearch.com/free-publications/ed-steers-gold-and-silver-daily/

it's free and has some great reading material.

just a thought.

D