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<p>[QUOTE=&quot;Cloudsweeper99, post: 924920, member: 3011&quot;]I never thought the inflation adjusted gold prices were meaningful.&nbsp; There are only two meaningful measures:</p><p><br /></p><p>1. The current marginal cost of production for a brand new gold mine from greenfields exploration to production.&nbsp; No commodity will stay below the cost of production for extended periods of time unless it is no longer needed or desired.&nbsp; I&#039;ve seen various calculations of this amount that generally seem to be around $900.</p><p><br /></p><p>2. Current supply and demand, especially demand since the additions to world supply are only about 1-2% per year.&nbsp; In perceived times of crisis, or when speculators jump on an uptrend, the price can go to multiples of the cost of production.&nbsp; Gold is unique because when demand pushes up the price, the supply can actually fall as owners of gold pull their bids because they seem the same forces pushing up the price as those who wish to buy.&nbsp; Gold is unique among commodities in having this quality.&nbsp; We seem to be in one of those time periods.[/QUOTE]</p><p><br /></p>

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