Quote:
Originally posted by Wayne at Pelican Parts
Not likely. Gold is not a static commodity - they are still mining it, and there's a lot out there sitting around doing nothing. If the price starts to get too high, then alternative sources will appear to lower the price.
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Mine production is actually declining. The easiest sources have all been mined.
The big issue though, is the fiat currencies around the world. Governments are running the printing presses non-stop, all that paper is increasing at a pace a
lot faster than new mines will ever come on line.
Edit: I'll add too, that it wouldn't surprise me to see gold spike well past the $730/oz mentioned above. The gold market is very small compared to the world's currency and stock markets -- even a small portion of overall investment capital being directed into the gold market, would have a huge impact on gold's price. Any number of world political and/or economic events could drive investor demand for gold.