I don’t need gold to “rebound”. I just have it. And if it comes down more, I will have more.
I just love these people who are waiting for gold to hit $600! One natural floor to the price of gold is that as the average grade level has come down, this has increased the cost of production per ounce. Mines will not remain open if the price of gold remains below the cost of production for an extended period of time.
The fact is that over the last few years things have been so tight for gold miners that hardly any exploration has been conducted. Eventually mines will run out of gold, with no replacement in sight.
All of the above will restrain supplies. Once the price starts rebounding, mines will be put back in production. But as to discovering new gold, it’s not like that can happen overnight after the price rebounds. That’s why the next rebound will take years going up.