The Gold Report: Heiko, in late June gold had its biggest weekly drop in two years. What's your take on that?
Heiko Ihle: It was set off by far-reaching talk of a slowdown in quantitative easing. However, an awful lot of U.S. dollars are still floating around and the price of gold is pegged to the U.S. dollar. In the long run, companies can't sell gold for less than it costs to take it out of the ground. At some point something has to give.
TGR: So, what's going to give?
HI: Either the cost of mining or the price of gold. Quite frankly, the cost of mining has been reasonably sticky thus far.
TGR: Can miners profitably mine gold at $1,200/ounce ($1,200/oz) and silver sub-$20/oz? Continue reading "Something's Got to Give in the Precious Metals Market"
