Nonsense! It can barely be removed from the ground at that price when all costs are taken into account. If that were the true price of gold only existing mines with very good economics could even stay in production. Junior companies wouldn't get funded at that price to move to development as the risks would be to great to finance them with peak oil looming and energy costs being uncertain. Hence the need to have the metals as well as the mining stocks.

There will be a tremendous demand for gold once people finally get it that "paper money" is just that paper and that the governments can, have been and will continue to print until the game can be run no more.

Another columnist wrote a line that resonated with me recently. His words were to the effect that when you pick up some foreign currency it looks so odd and paper like to you, you wonder how anyone could use it for money. And then it dawns on you that they see yours the same way. We just get use to doing it. But the fact is the stuff is worthless. Ask the people in Zimbabwe what money is. They know their country's currency isn't money. The people in the U.S. (and I'm one of them) are about to learn the same lesson.

Even though I know it's coming I don't know how I'll deal with it or exactly what the reality will be like.

P.