advice please, page-10

"Now how would you feel in either example if:

a) IDC fell over because the Gold price collapsed to $800 and they couldn't secure financing (not likely IMO but still everything's a possibility) and you lost all of your money OR
b) the Gold price skyrocketed to $4000 in 2016 (a possibility IMO) and you sold your 100,000 IDC shares at $6.50? "

elpha,
A couple of my thoughts on future gold price movements:

1) Gold has no intrinsic monetary value, other than the cost of production. It used to be said that the gold price was based on the cost of production in the deep Witwatersrand mines in South Africa. If the price were to dip below this, then loss of production would quickly restore the price to a profitable level.
Today very large production elsewhere probably makes South African costs less important now, but the principle remains the same.

2) So taking your two scenarios of $800 and $4,000 per oz.

Gold has an exchange rate (price) against every currency on earth. We mainly concern ourselves with the USD and the AUD. But if one currency devalues against others, it will also be devalued against gold, since the other currencies' price relationship to gold remains unchanged.
An example is the recent and ongoing devaluation of the Yen, resulting in the price of gold rising in Yen.

So, for gold to depreciate to $800 USD, there would have to be a MASSIVE APPRECIATION in the USD. As you say, elpha, most unlikely.
And for gold to appreciate to $4,000 USD, there would have to be a MASSIVE DEPRECIATION in the USD. Well, the Fed is working on that....
23.