Everyone struggles with what will happen to the gold price when...

Everyone struggles with what will happen to the gold price when an underlying factor changes...with regard to DEG it's a Gold producer and is a sustitute for REAL Gold. Demand for gold is (other than for limited range of industrial applications) easily substitutable (think Price elasticity of demand) and most gold is used in jewellery. If the price goes up buyers can switch to other luxury products e.g. swiss watch. When China is buying gold to back its' currency, reserves and moving away from holding US$ as a reserve, it increases Au demand and price goes up. These are non-industrial uses are all based on a notional value of gold, i.e. whats' the value of gold: whatever a willing and able buyer thinks it is. But buyers don't have to use gold as a store of value, they could use lots of other things.

....Your post got me thinking and I found myself writing a whole bunch of Economic BS here, which is easily found in better, more well written economic forums. So I have deleted all that and say simply, gold is worth what the market thinks its worth...and there is no reliably predictable price curve. So your guess is as good as anyone else's. As far as investing is concerned I follow the momentum. Not Financial advice etc, etc...