re: 2000$/ounce gold:
There is gold in seawater, in minute concentrations. Somebody is going to figure out how to genetically engineer coral, so it extracts the gold, and builds reefs that are 50% gold by weight.
Also, there are a lot of poor-quality, and difficult-to-reach potential mines, that are unprofitable at <300$/ounce, but become profitable at steadily higher prices. A panic, an "exogenous shock", a bout of inflation, may spike the price of gold up. But, you'd better sell into it, because it won't last. After a lag of a couple of years, an increase in supply will meet any higher demand. This is a commodity we're talking about. I predict the price of gold, over the next 10 years, will be less than 300$ (in 2002 dollars). And, over that time period, CSCO will outperform NEM. |
