Costas
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have is, what form will the transformation take? There is no gold
price of gold, or no realisation is necessary in gold production:
the capitalist buys directly with the output. Consequently, what is
the production price of gold, and how does it relate to its mint
price?
Paul
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There is a gold price of gold and it is 1. There was under
the gold standard in Britain a money price L2.17s.6d per
ounce if a recall correctly. Why then is there any problem
with production prices. This simply sets the production price,
and capital will flow into gold production so long as the
profit rate obtainable is greater than the average at this
pre-given price. Where it is lower, capital will be withdrawn.
Since in practice different seams have different yields there
is no general production price, but a different one for each
mine, and thus differential rent on the more productive ones.
Here in Scotland, there are erratic attempts to open gold mines,
they are clearly marginal since they never remain in production
long.