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iBoaterer[_3_]

In article ,
says...

On Thu, 27 Jun 2013 09:39:49 -0400, Wayne.B
wrote:

On Thu, 27 Jun 2013 01:07:44 -0400, wrote:

On 27 Jun 2013 00:37:08 GMT, F.O.A.D. wrote:

The price of gold plunged to the lowest level in almost three years
Wednesday as traders anticipate lower inflation risk as the Federal Reserve
dials back its economic stimulus program.

The real value of gold is probably around $700-800 but the prices went
nuts. It is just another bubble.

===

Not sure where you got that number from but it is definitely
unprofitable to mine it at that price. Assuming no large scale
selling by central banks, a certain amount of freshly mined gold is
necessary to replace that which is taken off the market by jewelery
and hoarding. At current prices you are more likely to see buying by
central banks than selling.

http://business.financialpost.com/2013/06/26/gold-prices-miners/

http://seekingalpha.com/article/1503672-the-cost-of-mining-gold-a-101-and-a-critique

Gold is not a necessity and once the bubble bursts. the gold in the
market now is enough to supply actual need. When gold is a decreasing
asset, that jewelry will lose it's luster and a lot of it will be
melted down ... as it has been for thousands of years. Simply the fact
that the bubble price drove miners to exploit tapped out mines and
make that profitable does not imply that the market cost of the gold
would support it if people were not expecting a price increase and
stopped buying.

Gold is money, money is a necessity in this world today.