Gold production is increasing rapidly and the cost of production is about half the current price. When this falls, it will fall just like the 1980s. But without the 5-12% inflation they had then, it will likely fall even faster.The pic is the first known gold coin. (Update: Read also Dennis Mangan's comment below).
But I don't doubt it could hit $2,000 before then.
Tuesday, June 15, 2010
Econobrowser (Prof. Hamilton, see link on the right side) has noticed the gold phenomenon. Its price is rising while all other commodities are falling. A commenter writes: