The Gold Report: Over two days, July 14 and 15, the price of gold fell over $40 per ounce ($40/oz), more than 3% of its value. To what do you attribute this drop?
Jeffrey Mosseri: I don't think it was a very extraordinary event. Gold has been trading around $1,300/oz. We see sharp upward and downward movements triggered by, for instance, something Federal Reserve Chair Janet Yellen said or a negative report by Goldman Sachs. It looks as if gold will stay in the $1,300/oz range for a little while. We'll see which way it breaks out. We believe it's going to break out on the upside.
Douglass Loud: Gold had been running up for a while, and every so often investors want to take some money off the table.
TGR: How high do you believe gold will go?
"We like North American Nickel Inc.'s Maniitsoq nickel sulfide project in Greenland."
JM: The average sustaining cost of production for gold is about $1,500/oz. If gold continues to trade below that level, at some point no new mines will be brought on. Supply and demand indicates higher prices for gold. At the same time, we're dealing with a seasonal trading pattern. Usually the position for those commodities tightens up around September/October. We think this will happen again this year. Higher prices? Yes. How much higher? We don't know.
TGR: Given that the financing for junior gold companies collapsed years ago, shouldn't the concomitant shortage of new supply have led already to higher prices? Continue reading "Three Reasons Why Gold and Gold Stocks Will Rise"