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<p>[QUOTE=&quot;NorthKorea, post: 1734684, member: 29643&quot;]I don&#039;t recall gold ever reaching $2000, and I&#039;m fairly certain that the last time gold really touched $250 was in Dec 1978, so it can&#039;t have reached that point since the &quot;80&#039;s,&quot; unless you meant the 1880s (or earlier), in which case, you got scammed... and you&#039;re 150+ years old.</p><p><br /></p><p>As for the costs of extraction, the $1000 price point has nothing to do with that. It&#039;s a psychological support. The human psyche tends to look at numbers that end in 0s as important. The reality is that the gold buyers will stick around until people stop selling to them. I know nothing about how to calculate a value for that, but I&#039;ll guess it&#039;s somewhere between $1185 ($22/g 14k, which will result in offers of $20/g) to $1067 ($20/g 14k), given much of the retail &quot;solid gold&quot; jewelry in the US is made from 14k.</p><p><br /></p><p>Now, it&#039;s probable that they are in 1-yr (or longer) lease arrangements, so maybe the number would need to be sustained below that level for half a year. If that happens, the number when the stores actually shut down operations might be as low as $880 or as high as $1067.</p><p><br /></p><p>Beyond all of that, gold prices will invariably continue to drop as long as the Chinese government continues to set interest rates in the 20% range. Why would anyone own gold when the government is setting rates that high? Essentially, the &quot;drop&quot; in gold currently being seen is the drop that was called for in October as the stock market began to grow. We didn&#039;t see the drop because Chinese and Indian mindsets led them to conclude that they should keep buying gold in the retail sector. Now that the Chinese are given huge incentives to NOT buy gold (higher rates of borrowing and higher rates on savings), the demand will shrink.</p><p><br /></p><p>That said, I can&#039;t see the price drop below $1000 without seeing actual deflationary pressure on technology product pricing.</p><p><br /></p><p>Platinum and Iridium (PGMs) are still the metals to &quot;invest&quot; in, if you plan to speculate, as both are necessary for the vast majority of industries in the modern world.[/QUOTE]</p><p><br /></p>

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