Today, Peter Schiff appeared on CNBC to answer the question, “Should gold have ever been $1,900 an ounce in the first place?” Peter defends his long-term stance on gold and points out that the falling price of gold will soon have serious effects on the mining industry.
“We know at $1,200 [an ounce], the majority of gold mines can’t even mine [gold] profitably. So gold is now trading for less than the cost of producing it, and of course in order to produce it you have to own a gold mine, which is very hard to do. So the price of gold can’t stay down here for a long period of time, because then the gold companies will shut down and there will be no supply.”
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