shorts in panic, page-31

71c4,

That was my point exactly (initially) that gold is only a representation of the value that someone is willing to pay. That's all it really does. It stores perceived wealth.

My initial reply was to the guy who said "that even with gold under $1000 that MYG will survive" and I wanted to know how or why it would be worth it for MYG to pursue at those prices?

MYG will surely not be able to mine at a profit. Forget the C1 $650 cash cost thats not a true price, you need to consider all the costs including royalties, capital repayment and depreciation etc.

'There is no “true value” of gold. A stock has a “true value” — the discounted future cash flows. A consumed commodity like oil or copper has a “true value” — what it can be sold for to someone for consumption. In both cases the “true value” isn’t known until after the fact, and the difference in what people think it will be is what defines the markets.

But gold does not generate cash flow and only a very small portion of what is bought and sold is “consumed”. As such, it has no “true value”, only what one person thinks they can sell it to the next person for, and what they think they can sell it to the next person for, and…

That doesn’t mean it is worthless; history tells us that is certainly not the case. But it does mean it can be highly volatile and does not have to align with the “fundamentals” that drive other markets."