Nouriel Roubini - Why Gold Will Fall to $1000

Really? Gold at $1,000 per ounce when it costs the largest mining companies over $1,200/oz to extract and some juniors over $1,500? How many primary gold mines would close at $1,000/oz? Maybe all of them?

Whilst there is obviously a large stockpile of gold above ground, most of it is tightly held in the form of jewellery and in central bank reserves. How many people and institutions do you think would rush out to sell their gold at $1,000/oz?

At the moment the Chinese and Russian governments, amongst others, are turning their foreign reserves into gold, at a $1,000/oz they could buy 30% more gold for the same money at a time that mine supply would drop by 30%.  Hmm demand up, supply down....price down, yeah sure.

This video is a keeper to bring out for a laugh when gold goes thru $2,000/oz.