MONTREAL — Gold production will continue to fall, despite a brief boost in 2009 and soaring prices, as deposits are exhausted and new discoveries remain elusive, say miners.
In terms of production, "2009 is the outlier as far as the trend," Omar Jabara, spokesman for US-based Newmont Mining, the second-largest gold producer in the world, told AFP.
Overall, "it's a fact that gold production from mines has been in decline since 2001 and has gone roughly from 85 million ounces to about 75 million ounces a year," said Vincent Borg, spokesman for number one producer Barrick Gold.
"It sort of goes down about one million ounces every year and our forecast is that it will continue to decline despite the higher price" for gold nowadays, he said.
Almost everywhere, mineral deposits are being exhausted and new deposits are not being found fast enough to replace them, these experts explain.
LINK HERE
Gold at $2,500 by the end of 2010, and perhaps much sooner- NEW Bob Chapman Article
HERE
The U.S. Mint said Wednesday it will suspend sales of the popular American Eagle 1-ounce bullion coins as rising demand depleted its inventory.
LINK HERE
The International Monetary Fund said Wednesday it had sold 10 tonnes of gold to Sri Lanka's central bank for 375 million dollars, as part of a restructuring of IMF financial resources.
LINK HERE
Gold is a bubble that will burst. Gold is not destroyed. Some of the same gold used by ancient Greeks and Romans is still in circulation today, in other forms. Some gets used in industrial applications (computers, air bag sensor connections, which must remain corrosion-free), but overall, there's plenty of gold around.
ReplyDeleteAny "scarcity" is due to the current hording fad, and when people are ready to sell, the market will deflate accordingly.
ReplyDelete12:16 you better do more research because you don't know what you're talking about. Antique cars are around since the 20's as well. What does that mean? China has instructed their citizens that they must have 5% of their holdings into GOLD, just this week. When you consider that all the GOLD in the WORLD can be put into a swimming pool, there can't be much GOLD in the world can there? CHINA can buy all of it for a couple hundred billion dollars.
ReplyDelete12:19 I don't believe you understand what's going on in with world events. The Dollar is dropping because of the massive 12 trillion dollar debt. It will go up another 1.5 trillion next year PLUS INTEREST. So, all countries are leaving the dollar into GOLD. Now, you believe GOLD will deflate? IT CANT! Unless the US defaults or the debt is paid. You think its possible? LOL
ReplyDeleteChina may have "instructed" its people to buy gold, but that doesn't mean they will, or more importantly, that they can afford to. Most Chinese are impoverished.
ReplyDeleteGold is plentiful. Production is controlled, just like it is for diamonds (overpriced, as we all know), and oil. When the producers get the signal from whomever, they "suddenly" make new discoveries and production amazingly goes up. Very controlled, very predictable. I like gold, and I've actually bought a small amount, but it can't be eaten.
In fact, the commodity I've bought is . . . no joke . . . whiskey. It keeps forever and it will great for barter if things get . . . unpleasant. It can't be eaten, but it's a great non perishable, inelastic commodity. For further reading, see Grapes of Wrath, J. Steinbeck, in whick grandpa Joad takes the last of the family money to buy a bottle of whiskey because he "couldn't take it no more and [had] to get drunk."
ReplyDelete1:16 you still don't get it. You can't eat dollar either does that many any sense to you? There are 200 million Chinese able to put 5% of their money into GOLD. If 10 million do it, the price would DOUBLE, because they are the richest in their country. Sri Lanka just announced that they will be buying tons of GOLD and INDIA will be buying ANOTHER 200 tons. GOLD IS NOT PLENTIFUL! Where did you get that idiotic statement. It can fit in a 64x64 foot pool, ALL OF IT IN THE WORLD. Stop your idiotic statements when you know nothing of what you speak. I have been in the GOLD business, studying it since 1972..You?
ReplyDelete1:23 wrote: "your idiotic statements."
ReplyDelete1:23, I don't engage in discussions with people who engage in name-calling---that's the sign of a person who has no legitimate argument, and is arguing from emotion, like a confused and frightened child.
its the misinformed info that makes your statements idiotic..sort of like MAIN STREAM NEWS. No time for that here. Do research then post. SIMPLE.
ReplyDeleteI put a third of my life savings in gold at $400-$600/ounce. Friends gave me so much shit over that and told me to buy a house instead.
ReplyDeleteThankful for watching Money Masters back in the 90s. That is when I realized gold was real and federal reserve notes were just worthless slips of paper.
I think he (Everybody Print) has been doing research 1:36. The Everybody Print person is right on target. Gold will crash like oil. I currently am building oil and gold short positions as of this week. I started on Monday and will continue adding to it until my entire portfolio is short oil and gold.
ReplyDeletePeak oil is a myth like global warming. TPTB make that stuff up so traders and wealthy elitists can make more money off it and tax it to death. Demand for gold is short-term and not realistic. When cracks in it's lustery returns emerge (like last night's $50 plunge in the price), people will not be able to dump it fast enough. I made a ton of money in 2008 from shorting oil. I am starting again this week with both oil and gold.