Why is gold crashing to below production value?
 

Is the US economy really getting better? Is the EU back on track? Is it Bitcoins? I can't figure it out.

Just sick of all of those fucking "Gold Rush" programs continually on the History Channel I expect.

The US economy is back on track, I would say this is the main reason; in times of total unzecurity, gold is very attractive, when it gets more stable, then people can invest in many other assets. Either that or India has banned all jewelry ;)

Gold price takes into account the futures market. As gold is priced in $ and with QE ending the dollar will stregthen, so the comodoty price will drop in dollar value. In the global scale of things the value will be the same.

mining cost is irrelevant, only demand matters, low demand = price sinking... :2 cents:

Its all about demand vs supply

Depends on which "expert" you want to believe.

I hope it it falls and falls and falls, cause I'll buy more and more and more.

Not in this case. People who short gold are moving away from it, that's it. The east is buying as much gold as they can get their hands on, at any price. So are Central Banks. The demand is still huge. In fact, it's even more since it's down.

In China right now they have roped lines outside of many gold shops with 100s if not 1000s of people in line. Keep in mind, China is 1/3 of the world's population. And we're not even talking about the rest of Asia or India who's also buying as much as they can carry.

EU is fucked as ever and getting worse

Price manipulation plain and simple. The US Bond market is in bad shape so the Fed is likely using the Working Group to drive down the price of Gold likely to inflate the dollar. But if you're smart and invested in them you should get out of your bonds now before the implosion and pump it into gold while the price is being driven down.

If the gold price was to drop to $800, over 80% of mines would shut and the supply would drop to a mere trickle. :2 cents:

Below production value? It was around $290/oz in late 1997, compared to $1200 today (after crashing from ~$1700 in late 2012)

It can't be below production value. Not even close.

I got that from here:

http://www.cnbc.com/id/100851209

"I believe that most of the headwinds that were present remain, so I believe ultimately we could go to $800 to $900 an ounce," he said on Thursday's "Futures Now."

if that happens a lot more gold mines will close

http://www.cnbc.com/id/100850226