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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Taikun who wrote (6159)	5/8/2006 12:42:57 AM
From: energyplay	Respond to of 220441

See Gene Epstein's column in Barrons' . He calculates that $2000 is equivalent to the old $800. I don't agree with the calculation, I think we may get to mid $2000s, maybe even $3000 - breifly. There were a number of gold properties which had production costs between $300 and $350 an ounce when gold was around $400 in the 1980s. Today, those costs are probably in the $400 - $600 range. These mines will take years to start up if they need to keep costs down at $500 - 20 ton mining trucks are back ordered for a long time. When prices get well over $ 1500, you can buy 20 2 ton pick up trucks and hire twenty people to drive them down to a dozen smaller back hoes digging away.... Your costs might hit $800 per ounce, but who cares ? if you can pull out 50,000 ounces a year, that's going to be a big profit on an investment that would likely be under 10 million. Demand will increase as price rises, and more people pile into the momentum trade. But I don't expect any one on this thread to be buying much at a price over $1000. As the momentum trade runs out of participants....well, maybe a bell will be rung at the top.