pog is out of sync with costs, page-22

BH

That's why i think there's a fair price for gold .. an equilibrium if you like - to sustain global production.

A $900/oz price today is about the right price for gold - and $700/oz was probably the right price last year given the much lower costs.

Now if gold is also seen as an inflation hedge and is being bought over and above what it was a year ago - which given the global inflation rate it should be - then it should be 50% above the current price.