Turns out i have this all wrong in not "adding in allowances for...

Turns out i have this all wrong in not "adding in allowances for contingencies and most importantly, return on capital, the all in cost to produce an ounce of gold for 2008 probably exceeds $700". So considering that energy prices have fallen and some producers claim that currently the cost is more like $1000 I'll use the middle ground at $850.

Average Global price to produce US$850 (All in cost)
Median producers margin in 2008 %27
Fair value US$1079
Current value US$1093

Well look at that, depending on the true cost to produce and what you believe that to be it could be on the money or better.

Discalmer:
I have no interest in bullion or paper gold I trade stocks only and my only interest here has been the flow of capital and the possible causes of it.