OTCPK:NOXOF - Post by User
Post by
MrMonkon Sep 16, 2013 1:23pm
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Post# 21743137
POG
POGPrice of gold can't remain suppressed indefinitely. Record demand from China and India and net buying by central banks should help keep some sort of floor on the price of bullion. As for the supply side, supply will only shrink at the current spot price. Mines that are not profitable at the current spot price of bullion may shut down, and exploration budgets at large companies are already being slashed to preserve cash and focus only on projects with favourable economics.
I'm not by any means an expert, but it doesn't take a rocket scientist to conclude that robust demand combined with tightening supply sets gold up for higher prices in the future. Technical damage from April and June will take time to work through, however there will eventually be a regression to the mean.
- MM