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Strategies & Market Trends : The coming US dollar crisis -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (54030)	12/3/2013 9:15:03 AM
From: Horgad	1 Recommendation Recommended By ggersh Read Replies (3) \| Respond to of 71456

"as gold appears to be trading below the cost of getting it from the ground." That is my thought on the main factor that is driving the XAU/gold ratio to historic lows. And the only way for it to "correct" and get closer to "normal" is for energy and labor costs to go down relative to POG. In other words, it is not so much that the XAU is undervalued, but rather that gold is grossly and unnaturally undervalued. Gold dropping more from here without labor and energy costs quickly following will drive the miners into the abyss. If the miners respond by continue to cut to supply based on paper POG and they will, that gap between reality and illusion will continue to grow and the break and bounce back to reality will be breath taking.