Faber: Gold won't drop below $1000 per ounce again, ever

Quote from ronblack:

Even lower. The plan is to unload gold to third word countries and then raise rates so that price collapses. It will be another major wealth transfer.
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The Indian populace owns approximately 15000 tons of gold which accounts for 1/2 of all the gold in the world not held by central banks.

I guess these poor sobs will see the value of their gold holdings get annihilated whishing they had bought the good ol USD instead.
 
Quote from Debaser82:

The Indian populace owns approximately 15000 tons of gold which accounts for 1/2 of all the gold in the world not held by central banks.

I guess these poor sobs will see the value of their gold holdings get annihilated whishing they had bought the good ol USD instead.
More...

only time will tell
 
Quote from ronblack:

Even lower. The plan is to unload gold to third word countries and then raise rates so that price collapses. It will be another major wealth transfer.
More...

Yeah, like the way the UK sold gold at the low? I think we in the industrialized west, especially the US, are running out of ammo.

Just look at our unfunded entitlement obligations, the military costs of wars, and the ever growing interest rate servicing of the national debt.

The printing presses are on fire and need L U B R I C A T I O N = low rates!

And yes, I have a malthusian view of gold. It is not created, it is found, and finding it is costly as ever, especially as oil gets more expensive.

Over a hundred years ago, one of the largest gold nuggets (2,332 oz!) was found just inches underground:
6a00e551c4c4d88833010536a5170a970b-500wi



Today, we have to turn mountains upside down and inside out to find the stuff, which is extremely energy intensive. I don't see solar cells or windmills having a dense enough energy source to do this, we need cheap and abundant oil for these types of operations:
r17113_42031.jpg


Those tiny trucks you see in that open pit mine look like this up close:
coal-trucks.gif


And the gold they find is tiny - you have to process all that earth to find it. And that process requires energy as well.
 
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