Well gold can, I'm not suggesting it will, but it could.
All that needs to happen is that its stopped being bought & put into vaults.
Or large holdings from CBs could be sold, similar to what we saw from the ETFs.
What if India for example banned all private gold holdings ?
Again not suggesting that is going to happen.
I'm actually not arguing for a lower gold price, but your premise that gold can't go below the cost of production is incorrect. Unlike oil, most gold isn't consumed.
In regards oi its more than just opex as you point out well life is short so its also about capex.
And there again is where your argument falls short for a lot of fracking production.
I am arguing these separately as I don't think they necessarily have to converge in price ratio, but there are also reasons why at some point they will, to a degree at least.
