gold, page-9

there is a lot of discussion on the web such, as this, speculating on the demand side of the POG.

Also remember that there are supply side reasons for POG and in the source below mentions the needs for gold co.s to achieve a price of $US900 before, on average, they profit.


So 1000, 1100 POG is what teh industry needs to survive.

This make sense of why few gold companies are profitable and cash flow rich and gives me further confidence that 10 or 11c would still be an extreme bottom for the RED team.



source: page 16
http://www.asx.com.au/asxpdf/20091116/pdf/31m239jxdl2bcj.pdf