Economists do it with models. Mental models. Mental models that fall to pieces the moment they are faced with the cold light of reality. - Me
Ron Paul looks more like Ron Poo.http://www.theaureport.com/pub/na/on-the-trail-of-juniors-with-blue-sky-potential-eric-coffin
Ritholtz has enormous common sense, curiosity, energy, passion, smarts, etc, but best of all, he is objective as best he can be and pretty much data driven. Really enjoy him and its great than Daniella interviewed him. His comments on gold were interesting, as, I think many thinking types will think similarly. Perhaps its Indian buying coming back with new political leadership and new policies, as you seem to suggest, that can assist to firm it up. But then again, maybe its something out of left field, who knows. Maybe it doesnt firm up, but, his point about cost of production makes complete sense. Al in costs including depreciation and amortization must be around $1000-$1200 at this point, I suspect. And, as (if) interest rates rise that cost will only go up.
I'm trying to limit all my commentary to data-driven people from now on.Gold demand is a function of wealth growth, asset allocation, and cultural characteristics. That's it. Wall Street Whitey can keep selling all the gold he wants, but at some point his gold runs out. Question is, do Indians start dumping gold at that point? Or do they keep on buying?Pre-WWII Italians invested in real estate. The Italian immigrant children where I grew up still put their money into real estate. It's only the new, second generation Canadians that are putting money into RRSPs. So hopefully Indian culture is similarly slow-changing.If Wall Street Whitey finishes dumping all his gold, and then sees the price moving back up on improvements to Indian growth due to Modi's pro-foreign investment policies, maybe he'll start trying to buy his gold back?But I'll wait til I see conclusive proof of that in the data before diddling with that junior mining crap again.