Interesting comment on this SMH article on gold today about Liquid Gold and Perth Mint. http://www.smh.com.au/business/the-new-case-for-gold-20110620-1gb6c.html A quick google brought up this LinkedIn page. http://au.linkedin.com/pub/daniel-jeffares/8/569/382
I feel Nathan limits his thinking to the inherent value of Gold as if it were a commodity, ignoring the fact that it isn't a commodity. By focusing on it's inherent cost of production as a market price indicator and ignoring it's value as a historically recognised wealth store, means his numbers are completely baseless. By this reckoning, a pearl or opal would only be worth the cost of production. The reality is they're not. The sum of the parts, rarity and percieved value are what detirmines price...far above production costs. That's why cultured pearls have a lower market price than wild pearls despite the higher production costs of the former! $1200/oz the real value of gold ?!, pffft! try $5000 and climbing!
I was more interested in this Liquid Gold business. Can't get anything else on it too many other hits for it. He has had the concept for a while so it might come to nothing. Could be handy for the all in types though.
