Gold below $500 an ounce

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  HonoluluDude Posts: 2,167 ✭

  September 7, 2006 8:04AM

  Um, no. It will take years and huge amounts of capital to dig it out of the ground.

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  96eagle Posts: 189

  September 7, 2006 8:08AM

  Form the articles I've read, 2 years to extract 10.8 million ounces, at a cost of $4.5 billion.
  
  96eagle

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  notwilight Posts: 12,864 ✭✭✭

  September 7, 2006 8:25AM

  
  
  << <i>Form the articles I've read, 2 years to extract 10.8 million ounces, at a cost of $4.5 billion. 96eagle >>
  
  
  
  That's over $415/oz for mining/extracting. They better not run over the estimate much or it won't be cost effective to mine it.
  
  --Jerry

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  coynclecter Posts: 2,111

  September 7, 2006 8:57AM

  That still wouldn't replace all the gold that the Central Banks have on their books but no longer in their banks. Fort Knox has gotten pretty empty too which is why there hasn't been an audit in decades.
  
  Don't expect to see gold fall too much. Even though the biggest gold shorts on COMEX, Goldman Sachs have taken over the US Treasury countries like Russia and India are opening their own trading boards and they won't put up with all these deceptive "paper sales". They will be trading in bullion only, expecting products to be delivered and there just isn't a whole lot of gold around.

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  Steve27 Posts: 13,284 ✭✭✭

  September 7, 2006 9:02AM

  It's more likely that a rise in the dollar will cause gold to fall.

  "It's far easier to fight for principles, than to live up to them." Adlai Stevenson

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