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Saturday, June 29, 2013

Gold Prices Are Tanking

CNBC reports that, on Friday, gold prices fell below $1,200 per ounce, which is considered the production cost of gold. The potential result is that some producers may go out of business. The article states that once production drops, supply will also drop, and the prices will go back up. However:
"This fall in the price of gold is not truly based on supply and demand - It's based on expectations of what the Federal Reserve is doing," Su said. "I think that somewhere along the line the gold prices will simply start rising, because production will reduce supply significantly." 

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