These large price drops make you think if this could happen? Doubtful though. Love to hear some thoughts. :/
Unfortunately my crystal ball is broken at the moment and the only thing working properly is my own self-interest. No idea. 3<
No, I don't think so. If you want my gut-feel forget-the-charts ('cause I don't understand 'em anyway) point of view, there's possibly some more downward movement in the next 72-96 hours, whether it's as violent as it has been, I doubt. We may perhaps shed down to AUD$1300, but I don't see much less. What happens from Friday onward - well, anyone's guess - but I don't think it'll be going down any further than that date.
Gold the heading on DrudgeReport - plunges ! Now US $ 1393 ! Down to US $ 1000 - looking ever more likely.
900 USD according to some guy in a video I can't find in the YouTube Digest section. He also said it's not worth buying unless it's at 900 USD.
But remember cost of production is different from mine to mine, company to company. Some mines/companies can make a profit at $300/oz while others need $1,500/oz. $1,170 is just an average and thus at $1,170 50% of mines will still be turning a profit.
Why not? Just it hasnt happen we say no. No one use crystal ball anymore. We use ipad nowadays. Also google. Faster than the crystal ball.
Using Smeagol's post in http://forums.silverstackers.com/viewtopic.php?pid=506113, I'm inclined to look for a bottom of around US$1200 (unless the ordure *really* hits the windmill). OK - Quiet down. To my left is Gate A. To my right Gate B. All those who think that this is a natural market occurrence caused by the bursting of a hopelessly optimistic resource bubble and exacerbated by the inevitable decoupling of the barbaric relic of Gold from the brave new world of prosperity and untrammeled derivitives - please move through Gate A. All those who believe that this was a $20 billion takedown of the market following a concerted PR campaign orchestrated at the highest financial and political levels to further elite interests at the expense of everybody else - please proceed through Gate B. All those in Holding Area A - please remove your wallets, watches and other valuables, sign the release forms, then take off all your clothes for disposal. You may now proceed to the Egress. You will be issued with sackcloth robes, tyre sandals, weapons (pitchforks, torches), and left to form a disorderly mob. All those in Holding Area B - you may now collect items left at Holding Area A. All those still here - you are either too dumb to live, or too smart to ignore. Please fill in this short questionnaire.
For the mines where it is a by-product and the cost is the incremental refining it's probably not out of the question. (But, yes, cash costs for primary gold mines are generally still way over this.) For example, at 2012 sales of 111,000 ounces of gold Olympic Dam is about 1/7th or 1/8th of the Kalgoorlie Super Pit (which itself is one of the top ten producers world wide). But the Olympic Dam operations are principally Copper and Uranium with the gold sales only representing 9% of the total revenues. Consequently, the cash cost of gold is very low because all of the physical mining and crushing costs are essentially attributable to the copper & uranium. Similarly, Oceana Gold's newest mine Didipio is deemed to produce roughly the same amount of gold but at "negative cash cost" (which is technically bollocks but highlights the by-product aspect). Edited slightly for grammar.
