Marc Faber discusses his gold price predictions for 2015 and whether gold could drop below $1k [youtube]http://www.youtube.com/watch?v=ei_RUPV0BBk[/youtube] Do you agree with his forecasts?
I believe it is definitly possible. I just hope if it does that someone will sell me some cheap sovereigns when it gets there.
I tend to agree with him fundamentally. Gold will continue to go south so long as inflation figures continue to go lower and we head towards deflation. I would expect the Fed or the ECB to step in with more QE if deflation looks to be setting in. I'm looking toward CPI and PPI figures to make my decision when to move as well as COT analysis to indicate when the market may start turning.
Who knows what will happen, over the short term that is.. there are plenty of articles out there supporting gold during deflation periods.
Yes such as what occurred during the great depression but it was the loss of confidence in governments to control deflation that triggered investors to head into gold.
Gold mining industry mostly 'under water' Gold Fields CEO http://srsroccoreport.com/gold-mini...-industry-mostly-under-water-gold-fields-ceo/ Gold Fields is able to "ride this through" as it has a break-even price of about $1,050 an ounce, or $1,090 an ounce including debt repayments, Holland said. While the company calculates its reserves at $1,300 an ounce, that number includes a 15 percent profit margin, he said. Across the industry, costs are about $1,300 an ounce including debt repayments, Holland said by phone from Johannesburg today, citing analysts' research
