HardAssetsInvestor: How would you characterize the gold market right now?
Joe Foster: I'd characterize it as it's forming a base. I think we've established the lows around $1,200 an ounce and it's in a bottoming process. We’ll spend most of the year in a range, but the likelihood is for prices to go higher, not lower.
HAI: Inflation hasn't been a notable factor for many years now. Do you see that changing any time in the not-too-distant future?
Foster: Possibly, yes. The unemployment rate is coming down. The main driver of inflation is labor and wages. As the economy continues to pick up and more people find work, there is a shortage of qualified people out there. We could see some wage inflation sometime in the next couple of years that may concern people.
HAI: Will that inflation drive gold higher?
Foster: Gold's driven by financial stress. The source of the stress doesn't matter. You could have bad levels of ...