"...Yesterday, in this space, I opined that Gold would soon be the Buy of the Generation, that the market is being set up by HB&B, led by Goldman Sachs calling for a cycle bottom below $700/oz, perhaps to $600-650.

I believe the cycle bottom will be reached in the $720-740 level, but we have to be watching the price to see the bottom unfold. I do know that at $600-650 gold price, very few miners will be economic. Many will have to shut down. Although supply will drop off, investment demand will continue to increase in order to hedge against depreciating currency values due to the uncurtailed increases in global money supply. As demand outstrips supply, either the central bankers of the world must sell the balance of their gold holdings or the price will escalate. It is only a matter of time. The total amount of available money in the world today far outstrips the total central bank holdings of gold, and inflation is certain to continue, particularly where government, insurance, education, travel, resource development, etc, is involved.

So the price of gold will continue to rise for many years, or it will rise suddenly to a new level and remain there for many years, as currencies, interest rates and prices of goods and services find their new level around which they can stabilize."