Note significant support here in the low 700s (1980 2006 2008)

http://www.mrci.com/pdf/gc.pdf

And not to forget good old Silver with multi-decade support at $10, only this time the US has spent it's entire Silver reserve of 2 Billion ounces.

http://www.mrci.com/pdf/si.pdf

I view any drop to the next major support levels ($500 Gold or $5-$7 Silver) as a clear vote of non-confidence in CRIMEX paper prices, and more importantly, a sign of imminent default that we've been hearing more about lately. The outcome will look like a vertical drop to zero in the futures market and cash spot prices head in the opposite direction. All PM Producers cannot survive at lower paper prices than today and thus will be forced to rip up all existing sales contracts based on CRIMEX prices, and declare a permanent "force Majeure." And lay down any fears of major buyers suing producers for breach of contract when the dominant pricing mechanism has utterly broken down, out of complete touch with reality.