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All right metals prices are taking on the back of today's jobs report that's more bad news for gold bugs who had seen prices dropped 25%.
So far this year alone.
So where do you see it -- up -- -- is vice president RBC capital markets he is here now and we were having a discussion as we were getting ready to introduce you.
That the cost of just digging this stuff out of the ground and making it is 12100 bucks announced and the -- Isn't really up an awful lot I mean if you think about the cost of diesel now and I operate all the trucks and -- the machinery the cost of electricity for our.
The course of electricity South Africa's sky high and -- of the miners.
We're really protesting they were having a problem and they they get -- tempered.
It's a little pull -- the chart if we -- of gold because when you see gold bug right about 1214 right now yes heading to that cost of production and magic numbers 12100 it falls -- you gotta stop mining it you have to stop producing well.
There are a lot of marginal producers who may stop minding because they won't be able to get the financing.
Unless they've sold forward now recently.
Upward move in open interest are open interest on Comex gold.
Just pop Warner -- -- are bound from 492000.
Last October where money left and went to stocks.
And now open interest is back up to 4151000.
Because of a large about a forward -- and hedging.
Even today Shanghai opened up a ninth session and futures to coincide with the hours they -- a 150000.
Contracts so I.
I'm understanding you correctly because you're much wiser that I am no they're going down the road visible to the gold gonna come back -- -- 12100 no we're yes I do I think that gold eventually.
Will again catch up to inflation.
Right now there's no inflation on the horizon.
In fact Bernanke said hey I could use 2% inflation but the open interest numbers you were -- tell me that perhaps this is the moment where -- wanna get in because if you can see it first say a year or two you'll be back in the money not too long from now.
Well just last week people were asking themselves -- they miss the opportunity below 12100.
We did get -- slow -- 1179.
I think was June 27 of June 28.
And that is also been the -- for open interest.
OK but but the thing that troubles me on the chart that you brought me is that you actually see a -- a potential for bottom of around -- thousand dollars an -- well back could happen you know central parks don't really like gold it's a distraction.
The price of gold as a barometer political and economic barometer of the well -- of the world.
And for the most part.
Now gold hasn't been so important because of the strength in the stock markets.
So who's gotten hurt the most you think the people who were buying gold individually the people who bought through gold ETFs.
Are probably a lot of the people who bought gold ETFs.
And boarded in the last year year and a half.
And they probably have gotten hurt somewhat but it.
Seems that they're pretty well a lot of it to right so if you are talking -- son or daughter right now and -- had some cash on the sidelines you -- think that we've been inflating a stock bubble.
Equities right now as it would you say son daughter gold get back -- I would say at least 5% of your portfolio.
You have car insurance that you hope you never have to use it right.
-- well gold is also about sort of thing that.
It may be needed but hopefully not and even if we were added -- -- flirt with that thousand dollar announced -- -- can't stay there because just to produce the stuff it has to get back over 12100 it was -- and it well may quickly because of course -- production.
But then of course you have to look at silver copper I think they're very important.
I'm probably good going forward -- we don't have time right now to discuss silver but I know you're a frequent guest they'll be great to bring you back to talk about so -- -- especially with the Chinese and but they always buyout metal well look at they look at the Chinese that last night's the first night.
They had a night session on the Shanghai futures exchange trading -- 150000.
Contracts of gold.
-- this -- about that's quite a bit all right Jorge -- thank you so much for being made us on the day after independence AltaVista sir thank you get.
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