by Steve St. Angelo, SRSRocco Report:
Harry Dent says gold is in a bubble, and according to his analysis, warns that it could go back down to $700. If the gold price were to crash lower to $700, as Dent forecasts, then 50+% of the gold mining industry would have to shut down. Why? Because the top gold miners total cost of production is now above $1,200 an ounce.
Of course, Harry Dent doesn’t take into consideration what it cost to produce gold as he pays no attention to the impact of ENERGY on the market. He, like many analysts, must believe that gold comes from the Tooth Fairy. And, maybe we can’t blame them as the world has taken energy for granted. Unfortunately, the overwhelming majority of economists and financial analysts do not incorporate energy into their forecasts. Thus, most of the market analysis today is seriously flawed.