Consider that GBN.V's presumed costs are in the ~$500/oz. range, and that gold price projections are for ~$900 then declining to over ~$700/oz. over the initial two years of operation. The gold price will average well beyond these price projections.

The following article, 'A Run On The Bank Of The Gold Cartel' makes a very strong case for a prolonged rally in the gold price:

http://news.goldseek.com/GATA/1252392300.php

I would add to it saying that most large gold miners are actually copper miners, and that gold-backed derivatives have been substituted with "gold equivalent ounces" Part of the problem is that they can only flood the market with so many "gold equivalent ounces" based on the production of certain base metals.

According to COT numbers, the copper price will have topped out just prior to the runup in the gold price:

The seasonal price bias is peaking, with the last opportunity for a price rise in early October. The COT numbers along the bottom of the chart are similar to the COT numbers at the top of the copper market last year.

http://www.timingcharts.com/index.php

Adrian Ash has an excellent factual daily commentary of the London Gold Market:

http://goldnews.bullionvault.com/gold_high_090820092

F6