Show I GOLD MINING IS NOT SO PROfITABLE 4 One explanation that has been offered to account for the better maintenance of ot activity In gold mining as compared the mining raining of oC some of or the other metals is that the price of gold is stable I Superficially the explanation Ion appears I reasonable but a more thoughtful consideration con con- of ot the subject makes it doubt doubt- ful UI if It gold Is any exception to the rule that tho the production of ot commodities is d determined by market conditions The C bat gold 1 Is used as a standard of ot ota a u do remo ot it from the field oi of e economic processes but merely obscures ob ob- ob the observation or of their results says say the Scientific Press The gold producer r continues to get et 20 an ounce for his product The Tho price does not change But all that this means is that if IC he produces an ounce of or gold he ha has hag an ounce oune of oC gold old When he lie comes gomes to using part or all aU of at his product In meeting the expenses of or production he finds that there has lIas been beena a a. decided slump in the yellow ello metal He lie learns that It takes constantly IncreasIng increasIng ing amounts of It to pay for or supplies equipment and labor Measured In what the producer gets In exchange e. e there has bas been ben a d decided dep depression slon in the market market mar mar- ket for gold Jold Gold production Is still sUII profitable not because the market for the metal Is stable but b because use of more economical methods in mining and anel extracting the metal from the ore These have more than offset the increase in production costs due to hl higher her prices for material and labor Jabor and the quantity produced In Inthe Inthe the long run Tun will represent an equilibrium equilibrium In which the available ore supply the real value alue of the product and the Increasing economies in production must always be the controlling factors |