Long term upside for gold could be immense. Short term still uncertain - Lawrence Williams

``Indeed there are parallels between the current situation facing the world's gold miners and the situation Birch came into back in 1999.  Although the gold price is now around $1000 or so higher than it was then, things have changed dramatically as inflation and expectations of stakeholders have seen capital and operating costs rise enormously.  Now it is reckoned by some who should know amongst the mine operators, that a good section of the global gold mining sector is not economically viable at even $1300 an ounce - certainly not on a sustainable basis if one needs to take account of new developments and expansions necessary to maintain output as older operations wind down or move into lower grade areas of the orebodies.''