Tocqueville Gold Strategy Investor Letter: Mine Supply Jeopardized; Will Force Price Upwards

``At the current gold price, construction of new mines in most cases does not make sense. Therefore, future mine supply is jeopardized without a substantial and sustained rise in the gold price. Miners have reduced costs sharply and are therefore highly leveraged even to a modest rise in gold prices from here... We also expect to see a trickle of accretive acquisitions by a small number of management groups who view the bombed out status of the share market opportunistically... We believe that the resolution of the disconnect between paper and physical gold will be a dramatic upside repricing of the real thing. ''