Where's the money going to come?

A question I've considered. Well, there's money out there. Lot's of it. Sitting on the sidelines, unlike us dummies :)

Goldcorp has 1 Billion Dollars sitting on the side waiting to pick up small mining companies. Don't worry about where the money will come from to build a mine. Let Goldcorp worry about that. If there is no money to finance anything then gold will soar and that will be where the money comes from to build a mine.

Instead of thinking in terms of how many dollars it will take to build a mine, think of how many ounces it will take. Right now, it would take.

For a 50,000,000 dollar mine it would take about 64000 ounces of gold, give or take a couple thousand ounces. Of course, you don't need to put up all that gold, just a decent downpayment, say 15,000 ounces? However, if the financial industry collapses, gold should go to $2000.00 or higher. Frank Barbera said this morning he feels it's going to hit between $5000 and $10000 per ounce. He uses $7500 as his avg fwd looking number in a disaster.

So given the fact that gold is bound to go way up if the financial crisis does widen and liquidity dries up, then they'd only need between 3000 to 4000 ounces to develop it. I think AEM, NEM or Goldcorp could handle that pretty easy.

/diabullic