***Precious Metals Investors Club***

[Stinky_pinky]

Silver surfer dude,
Yeah, production costs tend to establish a "floor" in gold...and most other commodities that I can think of. You mentioned that this is only valid if demand holds up...True, so let's look at factors affecting that demand. The article I posted finishes with the prediction that speaks to the demand side of gold:

"There will come a day then the bullion super-cycle finally sputters out. My guess is that it will come once Europe’s monetary system has returned to a viable footing - either by real fiscal union, or by break-up - and once China’s RMB becomes fully convertible and takes it place as the third pillar of the world’s currency system. We are not there yet."

My money is on the EU continuing to pay lip service to actions that might solve thier financial crisis (as opposed to kicking the can down the road a little further). Also the chinese will continue to aquire precious metals in the hope advancing the renminbi as an international reserve currency, which only began in earnest in 2009. http://en.wikipedia.org/wiki/Renminbi

These factors, and others, lead me to believe we are still in the early stages of a PM bull market. Gold does something! Most importantly it protects one's wealth from being lost to fiat currency debasement and devaluation. So...pay no attention to that man behind the curtain that looks surprisingly like Warren Buffet. I do not for one minute believe he "doesn't get" anything financial. Keep stackin the cheapies. S_P