Using The Hotelling Valuation Principle To Value Developed Gold Reserves (ea8a0921-9347-4f8c-8104-8d4f51d55c2d)

It is hypothesized that the Hotelling Valuation Principle (HVP) can determine the value of developed gold reserves using simple methods and easily obtained data. This paper reports the results of an empirical test of this hypothesis. Using publicly available data from North American gold companies, we obtained data for V, R, p, and c and ran a simple linear regression using equation (1.1) as the definition of the dependent and explanatory variables. By examining the value of the coefficients of the resulting regression equation, we can draw conclusion as to whether or not the HVP can be confident1y used as an estimator of the value of developed gold reserves.