HAHA - Goldbugs!

Quote from C6H12O6:

LOL :D But I wasn't kidding...

I will buy a pair of Prada shoes for 500$ knowing that it costs them 40$ to make it.
I won't buy gold for 1400$ knowing that it costs 400$ to extract it, not even if the gold bugs demand sends its price to ridicolous levels.
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How do you know it costs $400 to extract?
Have you seen what happens to miners shares?
do you really believe they would crash if their cost is $400

most companies disclose this information. there is no secret about that. It costs to extract gold in the range of $1100-1300 for most miners
some of miners have production price above $1400
if gold goes below $1000 I will go all in as that means there will be virtually no new supply until price goes back to at least $1500
 
Quote from murrica:

This does not appear to be a 'flash crash', just a selloff in a downtrend that tests the recent lows, but hasn't hit them (1321).
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when volume suddenly increases 100 times for several minutes this is definitively flash crash
 
Quote from kashirin:

most companies disclose this information. there is no secret about that. It costs to extract gold in the range of $1100-1300 for most miners
some of miners have production price above $1400
if gold goes below $1000 I will go all in as that means there will be virtually no new supply until price goes back to at least $1500
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so... until 2011 miners have lost money doing their job ?
nice, thanks, there's always something to learn :D
 
people need to understand that paper gold is nothing, phisical gold is money.
Gold was not traded, paper gold was traded...

who cares about paper...
 
Quote from moarla:

people need to understand that paper gold is nothing, phisical gold is money.
Gold was not traded, paper gold was traded...

who cares about paper...
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who cares what was traded. Paper money buys you smoke, and other fun stuff.

It is up time for gold till further notice.
 
Quote from kashirin:

some of miners have production price above $1400
if gold goes below $1000 I will go all in as that means there will be virtually no new supply until price goes back to at least $1500
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That's a fallacy. The average production price is a variable, not a constant: it depends on gold demand. High/low demand equals high/low production price.

If demand for gold collapsed then so would the average production price, because only mines with the lowest-cost production profiles would survive.
 
Quote from Butterball:

That's a fallacy. The average production price is a variable, not a constant: it depends on gold demand. High/low demand equals high/low production price.

If demand for gold collapsed then so would the average production price, because only mines with the lowest-cost production profiles would survive.
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" because only mines with the lowest-cost production profiles would survive. "

that is not quite the case. mines survive but may close down for a period of time. furthermore the gold production may be hedged at higher prices so production would still continue.
 
Quote from S2007S:

The same thing could happen to equities, lots of people thought gold was heading to $2000 now its $1500, same thing can happen to the SPX, every bull is looking for 1600, 1700, 1800, it could easily fall back to a 1000!
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Sheesh.. this always happens. When "an analyst" on TV says something, do the opposite and you have more than 90% chance of winning. I've used this technique a few times myself.
 
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