Exact John RiskAll these guys calling the demise of gold provide...

Exact John Risk

All these guys calling the demise of gold provide no thought provoking arguements or even reason in their logic

As you pointed out, if POG drops to $1,000 an oz, gold supply worldwide drops dramatically whilst demand increases exponentially as central banks average down and continue their demand and retail buyers take advantage as seen in recent weeks.

There is a tipping point with the supply vs demand that will dictate how high and low gold can go. My guess is $1,250 downdside and around $1,800 upside

You don't buy gold producers with cash costs at $1,300+, you are asking for trouble.

Point out to me Goblin what is so bad about low cost open cut producers coming in at $600 an oz ? There are plenty that have capex fully funded, cash in bank and are producing.

Anyone saying these are a sell when they have almost no upside priced in or value to the cashflow, but simply because they are producing GOLD are absolutely nuts and have no understanding of fundamentals.

If POG ever did go to $1,000 an oz (which I doubt will happen), these low cost producers actually become more interesting as they will be expected to pick up the slack in production as the majors go on care and maintenance and demand increases drastically, all the while mining services companies drastically reduce their costs to compete for work. Their cash costs realistically will drop further.

So keep bashing gold boys but I recommend thinking outside the box.

You have majors with huge overheads and cash costs of $1,300 an oz - stay away from these.

But I will take a junior any day who costs come in at $600 and will likely see a reduction in cash costs as drilling companies compete for work, all the while seeing increased demand.