The majority of analysts still don’t understand that gold and silver are based on two different price or value functions. To understand the future forecasts for precious metals, investors need to the difference between the two value functions.
In my newest video update, Important Factors Impacting Gold & Silver Price And Supply, I discuss in detail the two different price functions and why the current commodity-based mechanism differs from the precious metals “Store of Value.”
In the video, I explain why the “commodity-priced mechanism” is important as a floor for the gold and silver prices. Unfortunately, because Harry Dent doesn’t understand this mechanism, he continues to put out faulty and incorrect analysis on the gold price. Dent stated in his April 13th video update that during the next deflationary collapse of the markets, gold would head back down to $900-$1,000 or the lows of 2008 at $700.
Dent’s gold forecasts continue to be wrong because he fails to incorporate the impact of “ENERGY” and the “COST OF PRODUCTION” on the gold mining industry.
I updated Barrick and Newmont’s combined total production cost versus the gold price for Q1 2020, and was quite surprised. Again, I explain why I don’t see gold heading anywhere near $700 due to the significant increase in cost to produce the yellow metal since 2006 when gold was the same price.
This video took longer to publish then I had planned due to the research. I was quite surprised to see Barrick and Newmont’s total production cost rise to nearly $1,400 an ounce for Q1 2020 versus the $1,272 average for 2012, when oil prices were over $100 a barrel.
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