Brace yourself for the impending gold shortage. Gold shortage? Yup. With the launch of a flurry of ETF’s devoted to the barbaric relic recently, total ETF holdings have soared well past 60 million ounces worth $65 billion, more than total world production in 2009. The grand Daddy of them all, the SPDR Gold Shares (GLD), now has a staggering $42.7 billion of the yellow metal, making it the second largest ETF by market capitalization, and the fifth largest gold owner in the world.
When gold suffered a hair raising $150, 12% pull back from the all time high in December, I was deluged by traders asking if this was the peak, if it was the final blow off top, and if gold is finished as an asset class. My answers were no, never, and not on your life.
A tidal wave of fiat paper currencies is now flooding the world financial system at an increasingly alarming rate. Obama has not suddenly become a paragon of fiscal restraint. Bernanke has not morphed into a tightwad. When I pull a dollar bill out of my wallet, it’s as limp as ever.
In 2008, South Africa suffered its steepest decline in gold production since 1901, falling 14%, to a mere 232 tons. It now ranks only third in global production of the yellow metal, after China and the US. Severe electricity rationing, a shortage of skilled workers, and more stringent mine safety regulations have been blamed. Choked off credit has frozen the development of new capital intensive deep mines, as it has for everybody else. Rising production costs have driven the global breakeven cost of new gold production up to $500 an ounce.
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There will be no gold shortage. Gold will and has collapsed with everything recently. The further the Dow falls the further gold will fall.
ReplyDeleteDeflation is here my friends. Don't buy the hype.
Soon, the only real currency will be gold, silver, ammo and water.
ReplyDeleteIt might be real currency is water, food, guns & ammo, and then (silver and gold with any money left over).
ReplyDeleteAnon 6:39 -
ReplyDeletePut down the bong dude, your head is smoked out!
7:12, you got it man!
Yes its true the dow will fall and gold will go with it.
ReplyDeleteDOW=4000 AND GOLD=$4000. As Peter Schiff states the dow and gold will cross
Whatever,LOL!
ReplyDeleteLook at gold and silver, crashing just like the Dow,LOL
Buy dollars, CASH IS KING and only safe haven.
All that glitters is gold
ReplyDeleteevery shooting star breaks the mold
It's your decision
if you think the bankers IOU's are where you put your trust
It's your decision
(We feel the fire that surrounds us when you lied)
Anon 6:39: You are a total nitwit who is completely ignorant about gold and the precious metals markets. Even a modicum of basic research would show a buffoon like yourself anyone that there is a serious gold shortage in the world--the ZeroHedge article clearly articulates the reasons why that is the case. ALL the gold EVER mined in the history of the world would fill ONLY two (2) Olympic-size swimming pools. Trying educating yourself with facts before making asinine comments on a blog read by thousands everyday. Oh by the way, gold does EVEN better in a deflationary environment!!!
ReplyDeleteExactly > Gold and the Dow price will meet soon.
ReplyDeleteSilver better though IMO.
Obama with his Robbing Hood mentallity will just send confiscation squads from house to house to take what everbody has. So hid it good.
ReplyDeleterose - you are wrong - he will confiscate your 401k and IRA $$$ - that is where the $$ is. read the businessweek article about this (will look for link).
ReplyDelete+ all the idiots in amerika have been selling their gold at gold parties and hotel gold buying conventions - so the gold has been taken. (there is a rumor the FED is the actual buyer - at $1350 - during this soft confiscation)
Your right 507, but even after they have taken all of that, they will want to suck everyone dry of even their meager possesions. That is usually what happens to people in countries where new forms of government take over.
ReplyDeleteTO ALL GOLD BUYERS: Do NOT BUY gold and siver that they can not deliver withn 30 days! TAKE POSSESSION and not promises. One of the reasons why the gold and silver markets are not gaining as much (even though they are way up) as they should is because they are selling gold ORE and product that they are STILL MINING.
ReplyDeleteGet the METAL not promises or paper gold (ETFs) Gold and silver are a LONG ways from peaking, and if you doubt that, SELL NOW (to me or any buyer). The USD (dollar index) is what is effecting gold, silver, oil and wheat prices, and effecting the DOW as well. Even as the dollar supposedly gains strength, a MASSIVE collapse is coming. Don't be fooled. It is all Obama and bnaksters conning people. Why do you think FDR stole everyone's gold in the middle of the depression, before gold had as many uses as it does today and FOOD was even high priced?
gold and silver are the way mon
ReplyDeleteif you cant eat it, wear it, or shoot it, you dont need it!!! disregarded my own self perceived brilliance and added silver to the buried stash.
ReplyDeleteSILVER IS ACTUALLY RARER THAN GOLD!! http://www.live-counter.com/silver-production-worldwide/
ReplyDelete