Saturday, June 29, 2013

CNBC - "Should gold have ever been $19/oz in the first place?"

OMG where to start with the baboons attacking Peter Schiff and gold. Watch out for the first clanger when the host says "should gold have ever been $19/oz in the first place?" - um well gold hasn't been $19/oz since WWI. Then he finally admits "how about the fact that it’s darn easy to sell these days because it’s just a piece of paper and a computer transaction.” - Yes exactly people are selling paper gold and more importantly they are shorting paper gold.

On Peter's comments about inflation and gold mining, I think it is very valid point, when prices for gold were lower 10 years ago so was oil and more importantly gold ore grades were higher. I think $1200 is a good estimate for cash costs. If it wasn't why is Newmont shutting down gold mines in Papua New Guinea and laying off staff in Australia?