Alexandria Minerals Corp ALXDF

RE:RE:Buying physical gold

[Schmoby]

Flopticalcube wrote: ATM gold is both a dog and a loser. How do you "know" gold won't continue to fall and you are actually trying to catch a falling knife here? When do you cut your gold losses?

Simply because the cost of production will not allow it to fall below the breakeven point, just like anything else, production/supply will drop if the price falls too far. They will put marginal mines on care & maintenance and inevitably reduce exploration.

If that happens the effect will cause the pendulum to swing the opposite direction and go much higher as it takes a very long lead time to discover, develop and permit new projects. I believe it's a good risk/reward to take IMO, but each to their own.