I have long argued that gold would bottom around the all-in cost of production and this would provide price support. This is because as the price drops below the cost to produce, miners will be forced to shut down or suspend operations.
In an appearance on CNBC on Thursday, LaForge said that the end of the current “supercycle” for gold could push the precious metal down to $660 an ounce, or about 40% lower than where it is currently trading.
Anyone trying to make economic or political predictions with any accuracy is naive, delusional or possibly both. Yet, everyone seems to enjoy these predictions, so I have decided to partake.
The economy only grew at 1.7% during the second quarter. Can you imagine the condition of the economy today if the FED was not buying $85 billion in bonds per month?
One type of precious metals equity has been significantly outperforming both the metals and mining shares. This business model is gold and silver streaming companies.
