Comments on: Have We Seen the Bottom of the Gold Correction?

Comments on: Have We Seen the Bottom of the Gold Correction? http://www.dailyreckoning.com.au/gold-correction/2008/03/27/ An independent perspective on the Australian and global investment markets Sat, 21 Nov 2009 17:27:32 -0600 http://wordpress.org/?v=2.8 hourly 1 By: apteryx http://www.dailyreckoning.com.au/gold-correction/2008/03/27/comment-page-1/#comment-14065 apteryx Fri, 28 Mar 2008 20:20:00 +0000 http://www.dailyreckoning.com.au/gold-correction/2008/03/27/#comment-14065 We don't know the answer. But there are plenty of questions and much empirical data. Gold is still priced less (in "real" terms) relative to 1982. And there is much more (Central Bank (Portugal,Netherlands(?)), IMF) reserve gold been/going to be liquidated in the past decade/and in the near future. The US has about 9600 tonnes in Fort Knox (on the Federal Reserve Board's "books" at $37 per ounce); the IMF has $98 Billion odd: (at "market prices"). Higher prices will bring on much more production in old and new mining zones. This assumes that the credit squeeze doesn't tie up capital intensive projects - a point to remember is that a lot of new production is coming out of China and Russia - both countries essentially disconnected from the one side of the capitalist economy. We don't know the answer.

But there are plenty of questions and much empirical data.

Gold is still priced less (in "real" terms) relative to 1982.

And there is much more (Central Bank (Portugal,Netherlands(?)), IMF) reserve gold been/going to be liquidated in the past decade/and in the near future. The US has about 9600 tonnes in Fort Knox (on the Federal Reserve Board's "books" at $37 per ounce); the IMF has $98 Billion odd: (at "market prices").

Higher prices will bring on much more production in old and new mining zones. This assumes that the credit squeeze doesn't tie up capital intensive projects - a point to remember is that a lot of new production is coming out of China and Russia - both countries essentially disconnected from the one side of the capitalist economy.

]]> By: yokum http://www.dailyreckoning.com.au/gold-correction/2008/03/27/comment-page-1/#comment-13994 yokum Fri, 28 Mar 2008 02:06:35 +0000 http://www.dailyreckoning.com.au/gold-correction/2008/03/27/#comment-13994 Some 25-30 yrs ago, forgive my memory; gold hiked from near us$300-400 to over us$900 an ounce. Remember? Every dang thing made of gold hiked accordingly pronto. My gold leaf shot from $12 book to $46 overnight. What do you know? Today it is still $46 a book to the cent over all these decades, even tho gold price went back to it's former price. Today 'they' are still making hay on the 'old' price! This is why we pay overvalued price for gold products today; it never went back to it's standard price. Will history do the same again? Wait...there's more.. Some 25-30 yrs ago, forgive my memory; gold hiked from near us$300-400 to over us$900 an ounce. Remember? Every dang thing made of gold hiked accordingly pronto. My gold leaf shot from $12 book to $46 overnight. What do you know? Today it is still $46 a book to the cent over all these decades, even tho gold price went back to it's former price. Today 'they' are still making hay on the 'old' price! This is why we pay overvalued price for gold products today; it never went back to it's standard price. Will history do the same again? Wait...there's more..

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