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Gold prices - continue to slip tomorrow?
Posted on 12/14/16 at 4:54 pm
Posted on 12/14/16 at 4:54 pm
I am figuring that the feds raise was probably already factored in for the most part.
Posted on 12/14/16 at 6:27 pm to GREENHEAD22
In my opinion gold prices are going to continue to slide as CD rates increase.
There really has not been much of a reason to move out of PM's and into bank deposits since '08, if rates continue to rise that all changes.
Same reason Wall Street is terrified of rising rates right now
There really has not been much of a reason to move out of PM's and into bank deposits since '08, if rates continue to rise that all changes.
Same reason Wall Street is terrified of rising rates right now
Posted on 12/14/16 at 6:46 pm to GREENHEAD22
Hope not for long, got a gold mining company stock I'm impatiently waiting to sell for the last 6 months.
Posted on 12/14/16 at 6:56 pm to windshieldman
What miner out of curiosity, a junior or a major?
Posted on 12/14/16 at 7:33 pm to GREENHEAD22
I don't really have a strong opinion on what gold will do in 2017, but overall, gold prices actually seem surprisingly normal right now. I've taken the position for about 8 years that gold prices were way too high based on post-1971 CPI ratios, and were bound to fall below $1,000/oz. However, maybe with consumer price inflation picking up, it doesn't necessarily have to break below $1,000. If gold prices tumble in 2017, then it might become a decent hedge investment in 2018.
Posted on 12/14/16 at 7:33 pm to cave canem
I'm up slightly on a bear etf that I want out of bad.
Posted on 12/14/16 at 7:39 pm to GREENHEAD22
How can gold prices fall past $1000 when it costs about that to mine the stuff
Posted on 12/14/16 at 7:41 pm to mallardhank
Which is why I plan on getting out.
Posted on 12/14/16 at 7:47 pm to mallardhank
All in costs are lower than that in some cases.
Posted on 12/15/16 at 12:56 am to mallardhank
quote:Gold is different than other commodities (cement, zinc or steel, for examples) because Gold is not just used to make products (electronics, dental, industrial uses, etc.), it is held long term as an investment. The production cost is less influential on the market price of gold because there's a huge worldwide historical investment pool of gold that was produced over the past centuries (and even millennia) with this pool's total production costs averaged down.
How can gold prices fall past $1000 when it costs about that to mine the stuff
The historical pool is "competing" to investors with today's current gold production which prevents higher production costs from influencing gold prices to any great extent.
Another way to understand this is to compare two one ounce gold bars.
One was mined and produced in (say) 1950-
Labor was much cheaper
Little to no environmental costs
Overhead was cheaper
The other bar was mined and produced in 2016 with your correctly noted higher associated production costs.
Which one ounce gold bar is worth more?
The answer is obviously they are worth exactly the same amount.
This immunity to production costs is part of what makes Gold (and Platinum, Silver, etc.) different than any other commodity. It's also a reason why it was tempting to base currencies on an exchange rate with gold or silver.
This post was edited on 12/15/16 at 1:07 am
Posted on 12/15/16 at 9:10 am to windshieldman
And it appears I'll be waiting awhile to sell. Damn it, oh well.
Posted on 12/15/16 at 9:34 am to mallardhank
quote:
How can gold prices fall past $1000
How was gold 300 an ounce in 1998?
figure it out.
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