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Marc Faber: ‘Gold a Bargain Compared to S&P500′

No; they will raise the cost of SOME of the inputs (fuel, wages, new ventures) proportionately while others will stay the same (existing long term contracts, owned real estate). When you leverage the margin you see Very Nice returns...


On Nov 02 10:12 AM Doc 224899 wrote:

> If gold goes to $2000, what do you think happens to the dollar, or
> the yuan, or the ruble? Most scenarios that would bring gold to $2000
> are going to raise the costs of gold production proportionately.
>
>
> So here's the homework assignment: figure out what global market
> conditions raise the price of gold but raise the costs of gold production
> proportionately less, that would also permit Americans to profit
> from investing in international gold miner stocks (forget American
> gold miners - too many regulations and lawyers and environmentalist
> plaintiffs).
>
> My guess is that such a scenario would involve OPEC or China/India/Brazil/Russia
> replacing the dollar as the trading currency for commodities.