An overnight dip to the $1,490 area reignited perceptions that whatever the scope gold's recent falling away from the $1557 level might be, the decline might not draw to a close at least until some support is tested nearer $1,480.
Gold prices go up when cash and bonds fail to beat inflation. It was true in the 1970s, and it's been true again in the last decade. Both times, gold also beat both stocks and industrial commodities as well.
Apparently some have become fed up with commodity price inflation as brought to them courtesy of the Fed's "easy money" policies and the resultant addiction of speculative funds to gambling the lifeblood of modern agricultural and industrial life.
The Byron Capital Markets analyst sees the rare earth elements sector for what it is - something much different from mining copper or gold. He sees the keys to making money in REEs as metallurgy, location, marketing and downstream integration.
When one juxtaposes Alan Greenspan's views from 1966 with those of 2010, it is clear that he has a good understanding of the central role gold plays in the monetary system and that unbacked fiat currency is intrinsically worthless.
The real supply opportunity in the non-Chinese rare earth mining sector, is for those deposits that have above-average proportions of heavy rare earths, to be brought into production as quickly as possible.