Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: AC Flyer who wrote (14757)	2/11/2002 3:37:35 AM
From: FR1	Read Replies (1) of 74559

A few things to consider: Under the worst case scenario, the maximum downside for gold price is $200/oz That's a considerable drop from where we are. Gold production costs have fallen by an average of $13/oz. each year since 1990 And they may fall even faster as time goes on. The technology used to find and mine gold is getting better and better. I once saw a piece on some of the latest gadgets used in screening mine walls for gold - very impressive. Someone once reported the amount of gold in seawater and it amazed me. Tons of it in the rivers of Alaska. The problem is developing the technology for sifting it out (which they are working on). Who knows what the future will bring. Another item to consider is the introduction of new metallic compounds from the chemical engineers. Nanotechnology might make a lot of the need for gold obsolete. Gold is a great conductor of electricity but the new types of circuits might not need it. So, in general, the need for gold might fall as the ability to mine it increases. You could wind up with a metal whose primary demand is from jewelry collectors (and they might not be interested as the price drops).

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