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I put 40% of my assets in GOLD, which proves it's a bubble.

The company I invested in takes mine waste that has about 0.2 ounces per ton of gold in it, and processes it into a more reasonable 20 ounces per ton concentrate. Another company can then process that into actual gold, where it can be smelted into pure gold.

There are millions of tons of this waste with fractions of an ounce per ton (1) in nature and (2) at every single mine that has ever operated. Some local Alaskans take weekend trips to old mines to load buckets of dirt from abandoned mines to shake out some gold (and that's just panning for larger chunks, they themselves leave fractions of an ounce per ton in their yard or wherever).


Why doesn't everyone do this? Because gold costs about $300-$400 per ounce to mine, and at 0.2 ounces per ton, it costs about $550 per ounce to concentrate. People have done it in the past, but when commodities return to a "cost to dig up" valuation, these tailing operations are the first to become unprofitable.

Gold will return to a reasonable premium over the cost to dig up. If you think inflation will mean it will soon cost $5,000 an ounce to dig up, then gold is going to go up to $5,000+; but eventually, it will return to a normal price, because the higher it goes, and the longer it stays there, the more supply operations such as ours will come online to profit from it. The more distressed-people will sell their jewelry, and the more people will realize it has no purpose, and thus no value floor.

I hope that isn't for a long time from now, so my $ investment has time to produce some % profits from the concentrate operation. But someday in the future, the price of gold will drop below the cost of us to extract it from the tailings. I have no doubt.
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