At least gold is back up over 1600. That is a start. The Cypress bank holidays made for an interesting reminder of how harsh the financial system can be, an interesting development. If headlines like this develop elsewhere, it could do wonders for gold until things calm down. Needless to say, it is very difficult to determine where the gold market is headed right now... My expectation is higher, but I am concerned about added production supply, as formerly stated. Until I see numbers, I cannot expect it to be anything but negligible.
If anyone can point out any 2013 supply-side studies on gold, please mention them. They need to be comprehensive and forward looking. From what I understand, this was a topic of discussion, somewhat, on a recent Puplava podcast, and they were positive on the price. I will begin there.
If production supply remains the same or decreases over the next few years, we can expect the gold market to get better. On the other hand, if we see it go up 1.5x, it may put quite a bit of pressure on the price. Consider what you would do if you were a gold or silver miner in recent years. I would have fought tooth and nail to get as much supply to the market as possible, while these prices are high. So, the question looms. Is that supply inevitable? Has it already happened for the most part? Or are we about to see it happen over the next couple of years?
Maybe this is partially why the sector is hard-pressed.
