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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: tyc:> who wrote (123540)	7/16/2008 1:20:57 PM
From: Nevada9999	Read Replies (3) \| Respond to of 312689

I don't believe there are many undeveloped gold deposits out there that are worth messing around with if gold goes below $800. The FS may show a positive IRR, but its BS and the majors know it. Notice that none of these projects are being bought up. Cash costs for gold production may be $400-$500 per ounce, but that is BS too. Newmont lost a billion dollars last year. When a company has to maintain reserves and build infrastructure, gold mining is a waste of time at $750/ounce today, except with the biggest and best deposits and only if political and tax situations are reasonable and they are becoming globally less reasonable. Gold has been one of the biggest dogs of all the commodities just as Jim Rogers said it would be, because it has enemies in high places. Production costs are rising as fast or faster than the gold price. Gold production is falling and will continue to unless the gold price rises. This is looking more and more like the situation in 2000.