November 02, 2010
– Comments (10) |
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A long-term look at real gold prices.
Is that after they chop a few zero's off the dollar like Zimbabwe did?
Ha! Anything is possible...
I have to buy more gold.
When gold drops to $500 an ounce again, it will be the only thing worth anything.
I doubt it will, but I would definitely be buying at that price.
This kind of analysis is always flawed from the start because they don't take into account what's happening in the world.
Those dips didn't just happen because gold was drawn back to your average line by magical forces. Gold came back down because Volcker jacked up interest rates. Is Bernanke going to do the same?
Gold isn't a bubble just because the price is something you consider high. It can go much higher, it all depends on what the monetary policy of this country is going to be. If things change, I'll be happy to sell, but for now I'll hold onto mine.
Two words - Middle East / China... ok that was three words...
Gold will never see sub $1,000 again. Demand is way too strong.
I heard the CEO of Newmont just recently say that his production costs from mine to market run between $800-$900 per ounce.
With this in mind, I think it unlikely that gold ever drops below production cost.
ETs will fly their UFOs to come and buy gold @ $500/oz