Ken Williams: “Where Is The Gold Floor?” – Gold Goliath

Posted on :Dec 02, 2013

*Because of the great concern over what is taking place in the gold and silver markets, we are re-posting our commentary concerning gold prices.

2013 has been a very difficult year for gold as it repeatedly attempts to gain solid footing. The Fed has been very successful in suppressing prices and even more successful in shaping the attitudes of paper gold investors.

The stock markets continue to soar to record highs and it looks like there’s no end in site. History is sounding the alarm but blind sentiment never reasons. What we are being taught through the media and Wall Street is that paper is good and gold is bad. This of course is foolish thinking but nonetheless it is the prevailing sentiment these days.

We can only speculate as to where the gold floor is. We look at the $1,200 range for one primary reason. It costs the average mining company around $1,200 to produce one ounce of gold. Anything under $1,200 will produce negative cash flow and most companies will be forced to stop gold production. If this takes place, the law of supply and demand will take its rightful course.

If the Fed does throw out a significant taper we can expect to see gold drop along with the stock market. We do not believe this will happen. The Fed is desperate to keep Wall Street flying high because it’s the flagship of economic illusion.

It took the average investor 25 years just to break even after the 1929 market crash. What if they had been holding physical gold instead of paper? Don’t buy the hype. Central bankers protect their wealth with gold, not paper.

Gold Goliath is not your typical gold dealer.

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