Good post Skol. Last time gold price sat at the cost to mine it and deliver into demand i.e sub $300 in 2000/2001 there was massive Central Bank selling. Demand at that time outside of India was probably little more than US gangsta bling. And the $US was king.
Whilst the price has dropped substantially this year the demand side remains strong according to the World Gold Council and the reported mine supply of tons of oz sits at 2001 levels and looks to decrease even further. It is hard to perceive a sustained run under $1000 without a significant shake up in the demand/supply equation. And that would also require the US to implement strong $US policies which they most certainly are not, and such policies are against their stated interests.
