US "Discovers" Nearly $1 Trillion In Mineral Deposits In Afghanistan

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Sun, 06/13/2010 - 22:18 | 411556 ZerOhead
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Wow... what an incredibly fortunate development.

Lucky us... err... them!

Sun, 06/13/2010 - 22:22 | 411567 Hephasteus
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LOL. Yes quickly sell all your gold as this stuff will rain down from the sky during missile attacks. LOL I knew this was going to be a doozy of a bullshit story but I never would have thought of this.

Sun, 06/13/2010 - 22:48 | 411626 ColonelCooper
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I sold all of mine immediately after reading this story.  I had to take 60% of spot, but I thought it was for the best.

I'll try to sell my silver tomorrow, but I doubt I'll find a buyer.

Sun, 06/13/2010 - 23:34 | 411709 septicshock
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I did some quick math into what this would mean for my gold investments.  Currently, 160,000 tonnes of gold has been mined and is above ground... meaning 161 million kilograms, or a little over 5 billion ounces.  A total worth of over 6 trillion dollars distributed amongst 6 billion people, central banks, etc...  

This find in afghanistan of "1 trillion" dollars in mineral wealth encompasses copper, gold, lithium, iron, etc...   Even if we assume 25% or 250 billion dollars of this is in gold, underground, in a war-ridden country that currently has no infrastructure to support mass scale mining... we are talking about a 4% increase in the gold supply.   This is a drop in the bucket.

A mere 4% increase is nothing when gold is so undervalued.  Total world gold will now go from current worth of 6 trillion to 6.25 trillion.  I am quite sure this little "DISCOVERY" was happy coincidence in the face of possible destabilization from currency failure.  I quite appreciate law and order that comes from stable governments, but I also don't like being manipulated.  JP Morgan with all its short positions must be exuberant right about now...  jumping for joy at the windfall that they will make from a temporary drop in prices due to this "discovery."   After JP unloads their short positions after a massive outflow of gold investments from the fear of supposedly increased supply, it will go long this time. They will bring up how the find is miniscule in the big picture and that the mine will not become productive for at least 10 years and how current demand will continue to force prices sky high.

Fool me once, shame on you.  Fool me twice, shame on me.   I think I will be adding to my position...  I think the market will likely correct a good 10% to perhaps 20% with this news... at which time, I will double down.

I can't eat gold, but I can surely buy ambrosia when people start opening their eyes to fiat money


Sun, 06/13/2010 - 23:38 | 411720 DavosSherman
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Good post/job

Sun, 06/13/2010 - 23:55 | 411761 pip
pip's picture

Yes indeedy.

Mon, 06/14/2010 - 00:09 | 411782 Fish Gone Bad
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This is just wonderful news.  Four men drove around and figured all this out.  Of all the people in the world that have come to that piece of hard scrabble, Four men figured this out.  That is just amazing.  And they even could put a price on it, that is just incredible.  I will not be able to sleep at night, knowing that four men have saved the world. </sarcasm>  For the life of me, I do not understand why people think gold is so freaking hard to find.

Mon, 06/14/2010 - 00:22 | 411805 TBT or not TBT
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Can we do a Lexis/Nexis on whether a small team of geologists sent there by the British Empire back in Kiplings's time didn't announce some big mineral finds, just as it was becoming clear they ought to leave?

Mon, 06/14/2010 - 07:32 | 412224 Sean7k
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They probably lacked the satellite capability of "seeing" formations and mineral types that allow us to identify deposits. However, I am sure we never pointed them at Afganistan until just now...

Mon, 06/14/2010 - 01:01 | 411861 knukles
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By my feeble reckoning, there've been a number of articles in the press over the last year or so concerning Significant, Major Capital Investments in Afghani Mining Operations by the Chinese.  Complete with real, armed Chinese Troops for Security/Protection.

Leave it to the Reformed Ex-Commie Newbie Capitalistia Chinese to Rediscover the Joys of Mercantilism.

Mon, 06/14/2010 - 05:17 | 412126 jeff montanye
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gold up $3.80 on the news.

Sun, 06/13/2010 - 23:53 | 411759 pip
pip's picture

It doesn't mention silver, but the question is will they use this and/or some pumped up economic figures to get silver down to around $16.50 to knock out the possibility of calls at that strike taking physical delivery, or will they be satisfied knocking out the big call at $18?

Mon, 06/14/2010 - 00:11 | 411785 Hdawg
Hdawg's picture

Agreed, good post.


"They will bring up how the find is miniscule in the big picture and that the mine will not become productive for at least 10 years and how current demand will continue to force prices sky high."

I think the point is they are losing control of the commodities derivatives ponzi and this will give them a steady stream of uncorroborated media (amoungst other agenda forfilling reasons) to be able to move markets for the insiders.  The same will happen in Africa.

Free markets are dead.  Total Fascism.  

Mon, 06/14/2010 - 01:29 | 411904 CPL
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I've seen this exact story was BreX.

Mon, 06/14/2010 - 07:24 | 412217 Doug
Doug's picture

Well, not the "exact" story... this time it's USAx. 

Mon, 06/14/2010 - 07:26 | 412218 Doug
Doug's picture

This is going to be fun.

Mon, 06/14/2010 - 02:03 | 411948 charles platt
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Of course the entire story could be placed specifically to _encourage_ a drop in the price of gold. After all, none of the other ploys seems to have worked.

Mon, 06/14/2010 - 09:25 | 412378 Pegasus Muse
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JP Morgan with all its short positions must be exuberant right about now... jumping for joy at the windfall that they will make from a temporary drop in prices due to this "discovery."

JPM probably had a hand in developing the fabrication.

Sun, 06/13/2010 - 22:38 | 411598 caconhma
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The entire region (Afghanistan, Iran, Pakistan, former Soviet states) becomes very unstable. Furthermore, I don't think that Russia and China will allow US  to succeed.


Furthermore, following the recent Russian liquidation of the Polish elite, Eastern Europe becomes also very unstable. 

Mon, 06/14/2010 - 00:24 | 411806 TBT or not TBT
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Stability isn't a good thing in and of itself, particularly as regards Iran.  Destablizing it is a top notch plan.

Mon, 06/14/2010 - 00:35 | 411819 quintago
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minerals in Afghanistan? Yawn, this is old news.

Same goes for Africa.

Natural resources are finite in the short term, but discoveries occur on a continuous scale. As we have come to discover, particularly with the BP disaster, the problem is extraction more than it is knowing where the natural resource deposits are located.

Mon, 06/14/2010 - 04:55 | 412109 AnAnonymous
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Old news indeed.

The opening post is a bit misleading.

The discovery was done nearly 31 years ago. This is why US needed to despatch a small team of investigators only to confirm a previously made discovery. The locations, the maps, everything was determined and discovered before.

A bit like a treasure hunt.

This shed a new light on the invasion of Afghanistan as the locations of the ore deposits were known before. Another striking bit of duplicity by the US.

Sun, 06/13/2010 - 23:16 | 411670 BlackBeard
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1 Trillion = very poor ROI.

Sun, 06/13/2010 - 23:39 | 411727 Temporalist
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Exactly what I was thinking.  Perhaps we'll be using a new Afghani currency in the future because one trillion FRNs just aren't what they once were.

I mean it cost over $1 Trillion so far for these 2 wars in Iraq and Afghanistan.  And it has been the longest war in U.S. history.  So even if they ended both wars today...what a terrible return.  And that is excluding the lives wasted.

In my estimation the rare metals are what they are after there.  I'm sure nobody will see the reports on those until the mining has already started.

Mon, 06/14/2010 - 01:58 | 411939 Broken_Trades
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1 Trillion Today

10 Trillion in 10 years.


Lithium is a very hard to get after metal these days and will become more and more important in the future.  It also puts on a cool show when you get it wet ;-)


PS - I thought Bolivia was the Saudi Arabia of Lithium???

Mon, 06/14/2010 - 02:02 | 411940 Broken_Trades
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Double Post

Mon, 06/14/2010 - 02:01 | 411941 Broken_Trades
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Double Post

Mon, 06/14/2010 - 02:01 | 411942 Broken_Trades
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Double Post

Mon, 06/14/2010 - 00:13 | 411791 Hdawg
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spend a bunch of printed paper in order to get a country...i can't think of a better ROI

Mon, 06/14/2010 - 10:48 | 412522 doggings
doggings's picture

lol, good point, even if it was all here now its negative isnt it?

Mon, 06/14/2010 - 01:16 | 411883 Kali
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Seriously.  Besides, why would the US get the gold or minerals.  Doesn't it belong to the Afghanis?   : )

Mon, 06/14/2010 - 02:48 | 412013 The Deacon
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Now we know why the Taliban wanted to keep everyone out.  They wanted to keep their trillion $ SECRET stash of resources all for themselves!


Will the US build a new biggest embassy in the world, like the one in Iraq, or just the 2nd biggest?

I am sure they are there temporarily, but why not build some permanent digs in the meantime?

Resource wars.  How many had to die to invade a country and install a puppet.  Ahh, has always been thus, will alwas be thus.

Personally I thought they were there for purely altruistic reasons.

Mon, 06/14/2010 - 06:46 | 412187 Treeplanter
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Knowing what happened in Iraq with oil, other countries will end up with the goodies.  We pay, they play.  

Sun, 06/13/2010 - 22:19 | 411557 fxrxexexdxoxmx
fxrxexexdxoxmx's picture

Darn it. I had hoped once Soros got control of the herion trade I could get hit for $2.00 dollars in the USA.

I have to travel to Vietnam to get my fix for that price.

Sun, 06/13/2010 - 22:19 | 411558 everyone is bias
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now to figure out how to pay off the other 400 billion and we break even this year!

Sun, 06/13/2010 - 22:29 | 411579 ZerOhead
ZerOhead's picture

How about a windfall profits tax from the multinational oil companies in Iraq... remember the other war... the one that wasn't about oil?

Sun, 06/13/2010 - 22:19 | 411559 jomama
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what an amazing happenstance

Sun, 06/13/2010 - 22:21 | 411561 Hephasteus
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So this is the big bullshit story I was waiting for!!!!!

They'll leach a few tons of gold supply from what was stolen and claim it will never end from afghanistan. LOL

Sun, 06/13/2010 - 22:34 | 411593 ZerOhead
ZerOhead's picture

Nah... they'll just strap some ultra visible gold-plated tungsten bars to around a 1,000 camel caravan... and then have them circle around a mountain in front of the MSM cameras!

Inflation problem solved!

Sun, 06/13/2010 - 22:34 | 411597 Hephasteus
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LOL. Here's the new recruiting movie for the army.

Sun, 06/13/2010 - 23:03 | 411607 ZerOhead
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Christ... for a moment I thought it was Karzais' Loya Jirga!

From the NYT article...

"A bleak Ghazni Province seems to offer little, but a Pentagon study says it may have among the world’s largest deposits of lithium."


Looks like the fucktards are loading up on lithium to treat Americas next "Great Depresssion". But we cannot in all good conscience allow the Taliban access to their gold or they will certainly come back to take away more of our freedoms that they hate so much... by forcing us to declare Marshall law on ourselves!

"Yet the American officials also recognize that the mineral discoveries will almost certainly have a double-edged impact. Instead of bringing peace, the newfound mineral wealth could lead the Taliban to battle even more fiercely to regain control of the country."


Mon, 06/14/2010 - 06:34 | 412180 London Banker
London Banker's picture

I think you mean "Martial Law" (as in military administered law).

Mon, 06/14/2010 - 11:32 | 412593 ZerOhead
ZerOhead's picture

No... Marshall as in Susan Marshall an old ex of mine... she was tough as nails! (Kidding)

Kids... just say no to drugs! 

Sun, 06/13/2010 - 22:21 | 411564 GoldmanSux
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So did Alexander. The common soldier was wise enough to rise up and say 'enough'.

Sun, 06/13/2010 - 22:23 | 411568 Mitchman
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As I said in a different post, this smacks of the typical Administration misdirection at a time when McChrystal said it is going to take longer than he thought, Karzai the Magnificent is making goo goo eyes at the Taliban and even the right-wingers are calling for us to get out.  What credibility do these clowns have? 

Mon, 06/14/2010 - 01:09 | 411871 knukles
knukles's picture

Oh, fuckin'-A, we'll just tell the Whole World staying a while longer is Good for Democracy while we strip mine the forsaken place.  No remedial land reclamation costs.
Cheap Eco-Fix and Endearing Foreign Policy PR. 

I say we Go For It!

Sun, 06/13/2010 - 22:26 | 411574 Ophiuchus
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I wana see those core samples. 

Sun, 06/13/2010 - 23:05 | 411656 ZerOhead
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Salted or unsalted?

Sun, 06/13/2010 - 23:23 | 411685 LeBalance
LeBalance's picture

apple or pear?

Sun, 06/13/2010 - 22:28 | 411577 HCSKnight
HCSKnight's picture

This could truly be great news and literally a game changer for world trajectory.... 

IF TeamBO &/or the economic power circles dont F this up.

The US now can literally "nation build" because Afghanistan now has a viable, legitimate, economic basis upon which to build a society.

Hopefully the US can help these people build a country free of the dependency upon the opium trade AND Taliban/Islamic-Theocracy elements. 

They should create a company, call it something nationalistic like "Afganning" [Afghan Mining], in which each citizen/family receives equal shares of the company,  and of course it's profits, and those shares can, for the first 100 years, ONLY be bequeathed to their direct descendants - if there are no descendants then the shares revert to the Afghan people to be distributed equally.  That way the next few generations grow up living, learning and receiving the benefits of a capitalist economic system.

It could create a real hope for Afghanistan's national viability and identity, as well as provide the US a noble exit strategy.

I just hope they dont F this thing up....


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