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Gold Drops Below Its Average Cash Cost
As shown two months ago, the marginal cost of production of gold (90% percentile) in 2013 was estimated at $1300 including capex. Which means that as of a few days ago, gold is now trading well below not only the cash cost, but is rapidly approaching the marginal cash cost of $1104...
Which means that of the following mines (as we showed here) which make up the gold cost curve, one by one, starting on the right and going left, production is going to go dark, even without the recent demand by South African gold miner labor unions to have their wages doubled. Until eventually virtually no gold will be produced.
It is at that point where one must apply the New Normal supply and demand curve, when one can predict a $0 per ounce price for gold, as physical demand continues unabated, while actual physical, not paper, production has now started going offline.
Joking aside, not even Bernanke and all the paper Gold ETFs in the world will be able to do much to suppress gold prices from reaching their fair value when gold production hits a standstill, and when demands, especially by China, is still in the hundreds of tons each year.
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If one can't take delivery of physical gold at the wallstreet paper gold price then no the cost of physical gold is not below its average cash cost.
Seems like the powers that be are using the news to report a price of gold, but they are not actually offering to sell gold at that price ? They are just informing us at what price others will sell for ? Yeah right. Take a look at forbes headline, "Gold Could Fall To $1000" They are trying to get people who have real gold to sell it because inventory is getting thin and when people can no longer buy gold with dollars...
BTFD
Post your mark to mark losses in gold here:
Nothig under 100k please, we need to make room for all the entries over that #
Sure, right after the TBTF banks, worldwide do the same.
I'm still positive - Can I post that?
No, Citxmech, gold trolls cannot understand those who bought gold at $100-$300 oz. They cannot comprehend how ANYONE could be that prescient......and read that bolded, large cap writing on the wall. Everyone MUST have bought at 1700/oz.......it's what they did.
Dude, I bought gold at 100 an ounce and sold it at 400 . Bad trade.
And yes, most of you bought most of your gold well above the current price.
I am not sure that you can simply assign a single production price for a mine. For example, suppose I own a mine that can produce some high-grade ore that can produce gold for $500/oz. But suppose the same mine also has a lot more low grade ore that can produce gold for $1400/oz.
If gold is selling for $1600/oz, I would be tempted to process the low grade ore because I can make money on it now but it could become worthless if gold goes down to $1500/oz. I think that as the price of gold has risen, gold miners may have deliberately shifted to the lower grades with high processing costs in order to "make hay while the sun shines". And if gold prices dive, they may be able to shift back to the higher grade ore and their production costs/oz would automatically come down.
So the situation may not be as bleak for some miners as the article suggests. But which ones? I would look at insider share purchases for a clue.
Or they could be high-grading all the time!
Who knows for sure.
China in bigger trouble. They are hoarding gold, declining in value and holding a gazillion US bonds, also decling in value. Also hoarding smog of which Obama's gonna tax.
I think you're confusing gold with pre-1970 USD. Those still trade you know? Except today they call it XAU.
When gold was 1900 an ounce I was panning the Red River. Now that it's 1250 I should start panning the Columbia River?
Paper gold is in a primary bear market, since many months ago. And to make matters worse, the primary bear market in gold was reconfirmed on June 19, as explained here:
http://www.dowtheoryinvestment.com/2013/06/dow-theory-update-for-june-19...
So the odds were favoring the lower prices for paper gold we are seeing now.
50 cents and a Dow theory gets you a gumball at the grocery store.
Hell, I just bought more junk silver at <$19.00. If I had had more cash, I'd bought even more. Keep on printing you dickbrain Bernanke!!
+10
so have the prices of labour in first world; which asks the question :
What is more important to society : the price of that barbaric relic or the price of this obsolete paradigm called welfare state?
holders of the bag always think its everyone else thats wrong.
ask iomega owners
print fiat -> cb manipulation -> gold crash -> print fiat -> miners wiped out -> print fiat -> gold shortage -> print fiat -> gold price inflation -> print fiat -> miner boom -> repeat
A virtuous circle
A virtuous circle JERK.....
Fixed it for ya....
Gold is telling you the coming deflation/depression that the crooks at the FED have locked in!
When the official price is zero the government will seize it all and reimburse you in toilet paper.
With their magic seizing machine?
Thanks, best chuckle of the day...don't ask me why.
And then they'll set the exchange rate at $10K per ounce.
Goodie gumdrops means the Comex is about to be busted then gold shoots up in price once that happens since the paper market won't be the benchmark for pricing anymore at that point. Only reason to keep slamming is so to be able to settle them outstanding contracts in cash for as cheap as possible. Short term holders are going to take a beating but long term physical holders will prosper just fine.
Then why hasn't this happened already in the Comex silver market?
you're saying comex hasn't settled a single contract for cash in lieu of physical to date?
Spoken like a true trader dickhead. Because is takes time you money changing by the day shorting fuckhead. Jesus. BTW, this hit happened in 07/08 and then stawks got fuckin prison raped. Better place those stops there Gordon Gecko.
In other words: you have no justification for your beliefs, no evidence and questions you can't answer make you mad.
http://investmentwatchblog.com/comex-hurtling-towards-default-and-people...
Full Disclosure: 65% cash 15% PM 15% stawks 5% bonds
100% badass motherfucker.
You trade by the day. I'm having my best year and bought gold at 1200.
Fuck off.
Bought gold at $1200? You'll lose 25%, minimum.
I wonder if "Gold Rush" is coming back for another season? This time living in pup tents and doing it with a pan...the old fashioned way...
ooh, CNBC is getting ready to run a segment on why gold is no longer a safe haven - wonder what they will say?
You think CNBC is trying to slam PMs just to slam PMs? Geez. Have you ever taken a course in marketing? Ever heard the line "love me, hate me, just don't ignore me"? Ratings, fella. Ad revenues. You probably think CNBC producers actually like Joe LaVorgna more than Peter Schiff.
Ratings? Ignore me? Have you seen CNBC's ratings? I think they slam PM's because they are just another mouthpiece for the government. State sponsored propoganda.
http://www.zerohedge.com/news/2013-05-08/friendly-reminder-cnbc-viewership-plunges-eight-year-lows
Yes, I've seen their ratings. I believe that is why they run these PM shows, and why they bring on Schiff, Faber and Rogers. They would be more than happy to have folks tune in just to mock them (I mean CNBC itself, not the Doombrigade). Eyeballs are eyeballs. Advertisers pay as much for scorn as praise.
... right up to the point where they are the ones being scorned.
Going gold panning this weekend. So production won't go to zero.
Watch out for hippos. Or was it gypos.
yeepos.
Me: "Silver goes to $18, stays at or below $20 for a while"
Goldbug on ZH: "Central Bankster's Wet Dream"
One down.
Me: "Gold goes to $900"
Same Goldbug on ZH: "It'll never f#####g happen.
One to go
When gold crosses $1000 there will be pandemonium.
Gold goes to $780
Lame.
Nobody knows where the price will bottom. People who think they can "call" stuff this way... they shouldn't be investing. People who pull up old conversations to reward their ego DEFINITELY shouldn't invest their own money.
Making money is not about being right.
Nobody knows where the price will bottom.
Wrong. The people who set the price know when they stop pushing it down.
Another troll/sock puppet. Look his history. He just started posted when gold went down in mid Apil (he's been 2 years and 44 weeks).
No, ding-dong. I've posted many times before then. It just doesn't save all your comments when there's a hiatus. Sorry, I was busy.
Wrong, fella. Making money IS about being right. It is also (I'll admit) about luck. Most importantly, however, it is about admitting when one is WRONG.
Anybody trying to predict the bottom based on fundementals is smoking crack.
When the dollar looks strong PM's look week. The sheep are in cash now. It looks like a buying oportunity to me. I think the laws of supply and demand will kick in about the time there is total chaos in the financial world. How far are we from that?
Good week to pick up some gold, silver and treasuries.
Use those treasury interest payments to buy more precious.
the author kind of suggests the bottom is near.
My personal opinion is we will overshoot on the way down.
But that still does not make me sell gold and keep USD - i have seen too many fiats go completely out of circulation so that i prefer to hold gold and not paper
And... Wait for it... Here it comes...
There is absolutely NO manipulation going on in the precious metals markets... Signed... ZH Troll
Ouch! on gold. It's a USA Today article BUT... it is still a viewpoint, could have some or total validity, and should be taken into consideration.
http://www.usatoday.com/story/money/markets/2013/06/26/gold-plunged-to-t...
joego1: I'm in cash. So are many others. I'm not a sheep. Hey the USD is doing better than any other currency (your gold ain't doing too hot). And, it is poised to climb higher from global capital's flight to safety as Europe, Japan, China and emerging markets continue to unravel. Deflation makes cash king, not gold. Big gold hoarders are screwed with every deflationary pressure.
If you can't trust USA Today for the inside scoop who can you trust? And as Ken Winans says (from the article) 'gold was in a bubble'. I guess he missed the 1980 bubble, and the 1997 bubble or this one wouldn't have been as impressive for him, but hey, who am I to question? And great point he made, about there being more possible downside (by my reckoning, I guess technically there's still $1226 downside, give or take a buck). As he said, after 1980 gold lost 65% of it's value. And other than interest rates spiking to ~15% then, and with the US balance sheet still relatively solid, 1980 was pretty much identical to today. I also like how he pointed out that people buying gold at 1900 'paid the ultimate price'. I guess in his world, buying gold and then having the price drop on you is a fate worse than death.
Sorry, but shit like that is exactly why the MSM is the only place that's actually WORSE than the financial media as far as getting financial news goes.
If you listen to the trolls here at ZH, what you are supposed to do is buy high, and sell low. Genius.
The USD is the biggest bubble in the world right now. The fact that it went up 25%+ vis a vis gold in the last couple weeks is cause for concern, and not for stackers, either.
That volatility is a precursor. For what, we can't know for certain. Its a bit of a Schrodinger's cat problem.
Either the government collapses, or the currency blows. Not immediately, necessarily, but the process is now well underway.
And how long could deflation last? How are the US debt to GDP ratios going to fare under deflation? How do they prevent a total market crash without money printing? How will the US maintain its global war machine in a major deflation without sending government debt to GDP through the roof? Then how will the US buy foreign oil when its military shrinks? How will oil stay cheap when the US can't import it anymore? Then how could deflation last? Deflation is just one of the stages leading to hyperinflation in this case. I've been expecting this dip for a while, everything seems to be playing out as I was expecting.
Just more hectic, things happening quickly, or prices changing quicker.
Like, for e.g. I didn't think they could drop silver 20% in 60 days, but they did! So its just the speed that is 'impressive'.
When was that Bilderberg meeting again?
what deflation?
I see inflation. I also see panic insolvency but inflation is still the reality.
Gold: the biggest ponzi scheme of the all.
Dafuq
http://i1.wp.com/kathleencaron.com/wp-content/uploads/2013/04/Princess-bride-image.jpg
name me one ponzi scheme that lasted 6000 years beyond borders & even when nations died.
Other than religion.
ba-dum-tum-TING
Gold was showing weakness last November.
http://bullandbearmash.com/chart/gold-weekly-down-almost-2-again/
This fall will retrace, but the bigger picture is still down.
MSM is having a big laff at sites like ZH here :
http://www.businessinsider.com/the-end-of-the-world-trade-is-getting-utt...
Look at that Gold/S&P evolution since one year. Not saying its representative of whats up ahead; just saying statistics is a dangerous two edged sword.
ZH was saying the same thing about the same ratio going in favour of GOLD in 2011; it was killing S&P then...
What goes around...
+1 I sincerely hope that too many people weren't hurt by the zh gold permabullshit. It is one of the few things I don't like about this site.
Unrealized losses. If ZH produces weak hands then I will admonish the site.
Hello Herd Redirection. I with you there.
I'm still here and I'm not going anywhere. Have yet to lose any of my money, gold and silver. It's all still here and it's not going anywhere either.
They don't want to compare gold/silver to s&p 500 since the turn of the century.
How's that average cost look at $50-75 oil? If the Punch Bowl is not getting refilled then that's a real possibility...
is Obamacare an input into the average cost? then we have upside...
It's okay. We'll keep making paper gold.
Why own gold? I own shares of DUST, it's absolutely beautiful. DUST is paying for summer holidays this year. Gold $1000 can't come soon enough. Celebration!
You are silly. I'd sack you even if I was silly enough to hire you. I didn't. Carry on with your story....impoverished, using taxpayers to pay for your sort of failed ways.
For the guy with $100K who asked on ZH earlier this week whether he should buy gold/silver, and I said wait a moment.
Update: buy now.
You might catch the next low; unlikely. Buy now, physical, not on margin or etf. Then hold, regardless of intraday.
You would need considerably more than $100k to judge and profit off the next dip/buy moment.
yeah, it's looking better, but it keeps blasting through technical points.
I've been getting asked a lot. I'm not a gold hater. Actually, I will buy according to these rules. I may end up above the current price point, but it's less risky.
Wait for a breakout. Let gold find the bottom. buy when it breaks out. By breakout, i mean a 3% or more daily move into (or above) a 100 day high. Yes, you miss the early move, but it's higher probability buy. buying on the way down is riskier because of mindless momo. buying after a short rally is failure prone.
Like i said, i might be late to the party, but this is how i roll.
Note China freezing liquidity this week. The Politburo knows that gold and silver bought will halt it hanging on a lamp post which is why it has cleverly encouraged ordinary Chinese to buy...as does its central bank.
Ordinary people are mere pawns in this globalist experiment. Trade accordingly.
China, the world's oldest continuous civilisation will bail out certain banks, not all banks. China likes gold and silver.
duplicate
Just one Question Tyler.
Under whose rules with what accounting practices are being applied to create such numbers? Why?
Why,,,,,,,,,what a powerful word.
Thank-you for sharing Tyler.
Pens,
YOU MEAN THEY CAN'T LOWER INTEREST RATES TO INCREASE TOP LINE? I am so confused.. ROTFLMAO
An anonymous Department of Homeland Security Agent said months ago that the crash in precious metals prices would be a major even of shit hitting the fan. Check out this article.. it's fantastico
Anonymous Department of Homeland Security Dude blows.... whistle.
Good to see Haggman finally got rid of that 'We Support Israel" ad in the lower left corner on the home page. Was always leary of anything coming from his site because of that.....
On a long enough timeline... gold will go up. On a long enough time line... gold will be able to be exchanged for needed goods.
Yep, and that house cat Munger and Buffett had the cheek to say only jews fleeing Nazis owned gold, so gold is worthless.
Here is the news, Buffett, Microsoft and the rest of the overpaid house cats: Democraps and Repugnants.
You failed. I owe nothing to your sort. Gold and silver, for the Republic, not CONgress, and its failed nazionists, headed by the Rothschilds old monarchical family who say: no poor jews are welcome in their nazionist experiment.
Pay attention gold owners and traders. Rothschild said no poor jews would be allowed in its nazionist state.
Rothschild, the hofjuden of the old monarchies in Britain and Europe. Rothschild whose Lord Victor Rothschild was the 5th man in the infamous Cambridge spy ring in England which betrayed Britain, and the USA. Hates jews, gentiles and people of any land, all for their freak Internationale...now scared that they own no gold or silver.
BUY. Gold and silver, physical.
Barrick Gold and Newmont ended in the green today. Go figure.
They used to say buy steel shares when they are shutting down plant for lack of demand.
All the gold ever mined is sitting above ground. I would not worry too much about mine supply, as there is a 60-75 year above ground oversupply unlike any other commodity. We don't have 70 years of oil or wheat above ground for example.
For every seller there is a buyer. Price is set at the margin. E.g. if one million people exchange at $1450 and the last exchange is say betwwen JPM and FED is at $1300 the entire market price is $1300 (IMO it's not easy to get volume stats in the gold market.)
Additionally it's not just the dollar price of gold, it's what other values can you exchange for your ounces for.
Thanks for the price action Ben, I'm picking up some more physical today. I'll see you on the other side of the recovery.
4 years of 'recovery'. and still 'recovering'
There go my weekend plans to prospect in the mountains.
tis a flesh wound ;-)
on king world live they are putting up directions on how to fashion your foil hat into a foil helmet
I expect goldbugs must be enjoying a little buggery
Well bugger me, I picked up a couple of ounces today. I thought I missed my chance on the 8 sigma move down to the 1300's
Why own gold? If you can comfortably answer that and know why you got into this "dead asset" then this price action is either *yawn* if you have no liquid cash. If you are in a postition to buy it's exciting. I'm beaming and understand that gold could be pushed below $1000.
You are on the wrong side of the trade, pet. Time tells all. You'll only have to wait a couple years, pet.
The BIS rules, and it is transnational.
economic war
This aint the green zone bitches.
Time for the "This is why you don't put all your money in one asset class" lecture
Ahh, nostalgia...when boys thought they were men.
Pay attention to your spending.
The BIS is not amused with these ongoing failed gamers.
Inflation adjusted dollars?
Bitchez
wow!
to sell or to buy, that is the question.
a Shakespearian tragic comedy unfolding.
speaking of fascism and fasci-burgers, golden fries and
arches.
.
if you wanted to design a global fascist system of
government and laws how would you do it? start
with a global fiat currency and then construct from
there till you get these two stories..
Where that $20 tr. is hiding (best documentary I’ve seen this year)
Posted on June 26, 2013 by maxkeiser
http://www.maxkeiser.com/2013/06/where-that-20-tr-is-hiding-best-documen...
.
So good to be a bankster
Posted on June 26, 2013 by Alex Schaefer — No Comments ?
The United States two-tiered Injustice System in full effect: A San Diego man is looking at 13 years in prison and $13,000 in fines for using washable chalk to protest the banking industry. Jeff Olson is being charged with 13 counts of vandalism for writing anti-bank slogans on sidewalks outside three Bank of America branches.
http://www.10news.com/news/jeff-olson-man-who-used-chalk-to-protest-big-...
http://www.cbs8.com/story/22686986/local-mans-chalk-protest-could-land-h...
Read more at http://www.maxkeiser.com/2013/06/so-good-to-be-a-bankster/#Ur1ZKGt1FSSqU...
.
http://www.maxkeiser.com/2013/06/so-good-to-be-a-bankster/
.
comment: prison for chalking sidewalk in any meaningful way,
riches for avoiding taxes in your home country causing general
underfunding and collapse of services and infrastructure and
governance resulting in insecurity and war where millions are slaughtered.
.
sounds about right, the fruits of greed and fascism is bitter.
remember, the debt is the money, there the root problem.
and fraudulent induction is nearly universally misunderstood,
especially when it becomes systemic fraudulent induction,
ie culture. not your friend as terence mckenna said.
.
Terence McKenna: Culture is not your friend
http://www.youtube.com/watch?v=iYB0VW5x8fI
These low prices won't last. There is way too many dollars, yen pounds, euros, and yuan floating around backed by hot air and nothing else. Plus, the govt's inflation number is bogus. Go to shadowstats.com and see it around 9%.
Pardon my ignorance, but could someone please explain for me why the marginal cash cost of gold has gone up so dramatically, 2.5x fold, in the past five years? I mean, other than inflation. Is it because the mines are running out of the stuff? Other industries have been cutting expenses.
Good question.
I've heard that the mine workers are demanding higher wages, and that the fuel costs have gone up.
Still, I don't understand the 2.5X increase in costs, it can't be that much harder to find than it was five years ago.
Wages and fuel might increase costs 20%-30% but...
If less is being mined = less supply.
If price is lower = not as big an incentive for pawning the jewelry (besides the tons pawned when it was at $1,800).
Long term: less supply/high demand = higher prices.
Not to mention that a lot of this price action down are funds and speculators getting out of leveraged paper gold.
Darlings, the Republic as it is waning, I ask you to consider this:
Gold and silver, the world's oldest currencies and stores of value, VS the paper promises of politicians, and their puppeteers: the Trilateral Commission whose theories are failing and falling.
I say this to save yourselves. I'm ok, thanks to good gold man James Sinclair whose words have proven true, albeit I had other interests.
Put your ego aside. Trade. Buy physical gold and silver now. It's on sale.
he was really good at the "bottom is 1600" call too.
Oh wait...
to be fair I made the same wrong call.
Yeah, he kinda ticked me off with that "call". +1 from me.
petro dollars vs. gold
can bernanke ever "taper". how long can "inflation" be distorted. iran/china crude trade is done with gold. europe wants its gold back. we have the saudis by the balls with a defense agreement requiring them to only accept us dollars. watch the producers and what they accept for payment. china is now taking iraqi oil. we conceded it to them. russia is trying to maintain the gas death grip on europe and is even dealing with israel that has newfound gas resources.
we have the energy resources to provide lng and break the russian hold. we have the gas and coal that china wants. why does the current regime refuse to use these hammers? oh i forgot ... global warming... or is it a deliberate plan to weaken/destroy from within.. and destroy the dollar along the way... they turn the screw... how much will Americans take... the world haa lost respect for obama and the regime has no respect for Americans..
china has what, maybe 1.2 trillion in usd and is buying gold and dumping dollars. once china turns on the domestic consumtion market to replace the usa market why would they want/need or use dollars. russia, china, iran brazil are setting up an alternative exchange method, ER Rothschild says its time for an alternative to the USD..
what if the petro dollar is no longer the reserve currency... what do you want then....petro dollars or gold..
Gold. No disrespect to the Middle East.
Shall we get some self-respect here, and understand that the world is best held to some check and balances, as per the Constitution, just as one exemplar.
Meanwhile, buy physical gold and silver. Hold the politicians to account.
"or is it a deliberate plan to weaken/destroy from within.. and destroy the dollar along the way..."
You win. Those were the orders given to Harrison J Bounel of Kenya.
It is what it is, the gold diggers may not dig. Ten years they can use the numbers you guys use now. As a one time enthusiest whose main objective was not to work its because I sold my (silver) not cuz I kept it that I don't work today. Guys are making cash, I'm one, in stocks. Emotional investments end bad. Cuz I like ZH anyone interested in ideas, numbers, suggestions I pay to recieve hit contact on the talkative one.com Since I'm serious your gonna need to do some work. First give your ZH name only long term members (2 + years) will get info. 2nd where's your head? Thoughts on PM bulls and seeing the rug pulled. One example I'll list is aquiring 800 shares of symbol STEC April 21 2013, cashed out yesterday with a 72% return. Don't be a bitch ditch your ego or be a bitch and front you aint one. I'm no6t listing my option returns.
www.thetalkativeone.com
Dammit! I wish I'd been a member long enough to sell my soul for your personal gain... Another lost opportunity, I suppose...
Asshole.
taper on coincidence with short gold futures,
funny. the fortune cookie says "ben is your friend
dressed in wolf drag", but nobody eats there.
lately I feel sick whenever I consume anything.
.
art and magic of radio ...
Wednesday June 26 12:00pm
Gary Null - The Natural Living Show
http://archive.wbai.org/#ankor5
.
It's funny to hear some of you talk about inflation like it's so rampant that your loaves are going up 1000% a day. I remember a few years ago when the billion price project was being launched, this site was saying that governments would no longer be able to hide inflation. Well guess what, that project is in line with the numbers coming out of Washington. Those buying gold after October 2010 are ate breakeven or much worse.
dunno where you shop but my cost for bread, sliced ham, etc., is up at last 30% from 2009 costs and I'm not happy with that.
removed by author (duplicate post)
Interesting take on Gold and prices:
http://goldtrendsmagazine.com/articles/Gold-The-Ultimate-Un-Bubble
Yeah....I bought 9000 shares of FKME last week. Sold yesterday for 72% unicorn cum. Bernanke fucked my horse. I'm driving a Porsche now and burn tires for warmth. Life is good. After I get back from Hell Island with the hooker-wife I'll short gold a little more. I may have to sell slaves to raise more cash, but no worries. They are Chilean so they are light yet sturdy. You gold bugs make me laugh....cackle even. Hail Satan.
/S
I just sprayed a big gulp of coffee all over my computer screen, but I don't give a fuck. That was the funniest comment on ZH all year.
OK, China will produce 440T of gold this year above the production cost. Well, this gold will stay in China supporting an introduction of Yuan as the world reserve currency.
Indians and Chinese will continue buy gold. The question: from whom? After all, they don’t buy paper gold.
Canada will be a huge loser. Its government and political elite have ruined Canadian economy specifically gold mining and commodities producing enterprises by serving the world banking mafia instead of promoting their national interests.
Also suppressing commodity prices, Central Banks are highly benefiting China at the expense of Russia creating more geopolitical confrontations.
The bottom line: the FED & EU actions, specifically promoting US domestic over-consumption and supporting US$ as a world reserve currency, highly undermining the world economic stability at a time when US military capabilities are greatly decreasing.
Miners should sell it directly to the customers:
Some have an "operating" cash costs less than $550 per ounce. It's the all-in cash costs of approximately $1000+ per ounce that gets you.
Agree! I buy physical from a small miner at 5% below spot. Refinery assayed, certified and numbered at 99.95%. If I want I can even sell back to the refiner at 1% below spot! He has limited monthly quanties but if anyone is interested give me a shout. Greg@logigold.com
http://store.greatpanther.com/
I'm seeing 31 USD/oz quoted.
GPR (tsx) / GPL is the ticker for this one
The predators are up to something big.
Here is my worry.
They have decided to steal all gold (again) from their western sheeple slaves. And they want to absolutely, completely, royally and totally screw them to the wall for buying gold in the first place. The predators know most gold holders are their political enemies, and therefore want to deprive them of resources to defend themselves in the upcoming collapse and overt enslavement.
So they crash gold as far as they can possibly manipulate it, via paper manipulation AND dumping some of their physical on the market.
When they've got the price down as far as they can push it...
The declare private gold to be illegal, and demand it be turned in.
The predators get the best of all worlds.
#1: They pay minimum price (in worthless fiat) for the gold.
#2: They deprive their adversaries a big chunk of their wealth.
#3: They invent a bogus excuse to cage anyone who holds gold.
#4: Once the predators steal the gold, the nominal price recovers.
#5: They steal more gold than they dumped to crash the gold price.
#6: The predators now have enough gold to return to Germany, etc.
-----
Something about the current situation smells like crazy. This is not just a normal manipulation. Even after physical purchases surged after they crashed the paper price in April they decided to go ALL IN to crash gold further.
I suggest everyone get their gold out of the USSA. NOW, if not yesterday. Then get on an airplane and fly to live with your gold. And stay there.
-----
Other speculations welcome.
btfd and get a accident prone boat and a shovel with
built in gps.
Don't worry Ann, there will alway be American men to protect an honest woman.
Thanks, but they will need to move thousands of miles from the USSA to be able to protect me. Oh, and they have to find me first, which ain't gonna happen either. Thanks for the kind thoughts, but I'm in a lot less danger than they are!
We liquidated everything we had in the west and bailed out to Thailand late last year. We gave pretty much everything to our daughters/Thai nationals to protect assets from plunder (of course we paid all taxes -- our share "due" to the oligarchy/sarc).
We are very happy to have escaped with most of our assets, and are now free from constant taxes (though we cannot escape the inflation exported by the central banksters).
"Something about the current situation smells like crazy. This is not just a normal manipulation. Even after physical purchases surged after they crashed the paper price in April they decided to go ALL IN to crash gold further. I suggest everyone get their gold out of the USSA. NOW, if not yesterday. Then get on an airplane and fly to live with your gold. And stay there."
I agree with your suggestion, but recommend you get all assets out.... Not just PMs.
"They" will take them eventually via taxation, inflation, asset stripping via fraud (markets), or direct plunder.
We planned an exit and executed. But it takes time and some connections. If any of you are interested in this (exit) I might be able to help. Contact me.
Thanks for the comments. Wise you are. I bailed out about 3 years ago and moved to the extreme boonies and established about as self-sufficient digs as I possibly could (solar/wind, batteries, DC-to-AC, water collection/storage/purification, etc). Where I live now is 120km from the nearest human beings (actually about 20 people within that radius), my digs cannot be reached by land vehicle, and my digs are almost impossible to detect much less identify from the air. I own and pilot tiny, modern, high-tech aircraft to "run errands" and "go exploring" (that flies up to 300kph, gets 75mpg (at 250kph), and flies up to 4000km+ non-stop (6000km+ with in-cockpit fuel blatters connected)).
So I'm in very good shape compared to most people. I did blow most of my precious metals to pay for my digs, however, but have some left for emergencies. I mostly worry about other folks who remain in the clutches of the evil empire. So yes, I and all my assets are long gone, well hidden, and mostly not movable anyway. And as I said above, the most important asset to get out of the USSA is your own body, like you and I have done, but few others have... yet.
My way to vanish is not suitable for most folks. I had previous experience with self-sufficient systems and self-sufficient living from living alone at a remote mountaintop scientific facility for several years, and still it was quite an effort over 2+ years to implement my digs (after 5 years of exploring to find the best place).
Your approach is certainly better for most folks, and any guidelines you post will be helpful for many folks.
I am a gold bull for sure, but given the large secondary supply, I doubt if gold dropping below its average cash cost means much for the price at all in the near or even medium term. I would think this is more of a bullish factor for the miners in that time frame b/c it will give cash rich companies the chance to buy good, discounted assets from juniors who are now way cheaper and more likely to be uneconomic first.
Trade a $20 FRN for an ounce of silver? Seems like a good deal to me.
An absolute STEAL, albeit a legal one (at the moment).
I try not to get attached to things that increase in price exponentially. They tend to come back down the same way. And, getting emotionally attached to gold or any other investment is a risky proposition. Trading it, OTOH, is a different story.
Gold is one of those assets that has done a great job of obeying the basic rules of chart patterns and harmonics -- which makes it relatively easy to forecast. And, unlike fundamental investing, you know pretty quickly whether or not you're on the right side of a trade.
e.g. when gold broke horizontal support and a Fib fan at 1530 on 4/12/13, it was an obvious short -- falling 13% in 3 days; when the channel that has guided it higher since 1999 broke down on 6/2/13, it fell 9% (so far.) The bounces have been a little harder to call, but they have happened when/where they were supposed to.
Gold could definitely get a bounce here (a small Crab Pattern completes @ 1219.) But, the next downside target it will very likely reach is 1155. This is the .618 retracement of the rise from 681 (Oct 08) to 1923 and intersects around mid-July with the bottom of three different channels and the .618 Fib fan from the 681 low.
If gold can't hold 1155, look for a drop to 947 by the end of the year. If it can, it should be good for +300 in the same time frame.
Gold charts updated today at: http://pebblewriter.com/update-on-gold-june-26-2013/
Obviously, if there is no gold mined that will be very bullish for the Dow, S&P, and negative for gold itself. If they're not mining it, the cost drops to zero, right?
One could look at Gold, a part of freedom and liberty, as being on sale at the cheapest price within the last few years. It's been put out there for the taking.
Reach out and take it.
No ones going to give it away
They make it hard for the people today
To get what you want, you've got to do it yourself
Don't be afraid to drive a nail in the wood
And break the bottle that ta-ta-tastes soo good
You'll go the distance
You never thought that you could
HEAVY METAL-Cheap Trick-Reach OutLike Granny said..."He that takes advantage, gets advantage."
The BIS is transnational, and the world is a contest of ideas.
It is riduculous to see self serving career politicians and their apparatchiks whine...after bankrupting their voters - the same votes that cheer for statists, and apologists. Jerks.
Junior Miners Bitchez!
Gold premiums in India jump as physical demand outstrips supply:
http://in.reuters.com/article/2013/06/26/markets-india-gold-idINDEE95P08I20130626
But why? physical paper decoupling? Not according to the first paragraph of the article:
"India, the world's biggest buyer of gold, now requires importers to pay upfront for inventory, making it difficult for smaller jewellers with lower working capital to source supplies. The government also raised the import duty to 8 percent in May to keep a lid on the surging current account deficit."
The indian government changed the rules. Jewellers can't afford to buy gold up front and carry the cost until sale. It has nothing to do with the actual spot price or the paper market.
Is anyone really suprised, I mean really cmon,you should hear some of yourselves. Didnt this year teach you anything?
http://youtu.be/zmLew8kIbWw
I am feel so sick as I watch day by day my blood bath in gold... this hurts
Think. Has your 1oz gold changed weight? No? It is still the same mass? So what is the problem?...PS just be happy you are in a place that you have au...not ag and nickels like me,. (You didn't go i n on margin did you?)
Yes it is totally illogical - to have long term intense demand for a product and simulanteously its price falls below even its production cost.
The only way this is possible is if you have a coordinated plan by a number of biggest players in that market...and that you have control of the official regulators of that market.
We see bullion banks default on delivery of gold, they don't have it, yet the price of gold drops?
EVERYBODY KNOWS that this is just a plain simple if obvious corruption of the gold and sliver markets by The Powers That Be to help the failing bullion banks, allow them to clear their shorts and then stock up on bullion at rediculously low prices.
And of course the CFTC is fully briefed and aware of the market corruption and ready to keep it protected whenever challenged.
When gold and silver were allowed to have their head for even a little while we saw gold at $1900 and Silver at $49 and rising...and in line with Fed money creation. Simple, sensible and obvious correlation.
AND if the market did not come under one of the most heavy handed manipulations/corruptions by the Fed and Co in history, gold and silver would quite naturally be in $2,000s and $50+ for a while.
So whenever these banks think they have recapitalised their balance sheets enough when equating their new bullion holdings with the true value of gold and silver....the market price will be allowed to resume. AND they will make their way to the 2000s and 50+ in short time.
kina
I disagree, there are other explanations. Fofoa has one and I'm up 50% in 5 days following not his advice but the conclusions one comes to by thinking the way he does.
Paper gold is going much lower unless some one rushes in to buy more than the sellers are willing to naked short sell. Physical buying is hardly a blip in the greater picture. If they buy back at the end of the bear raid they can keep it up until gold is at 300 or the Comex fails (more likely). The hedgeies and BBs are just doing what makes pretty riskless money....until they break the system...
It is like a bear raid, but it sure has the footprint of panic selling.
I went on to apmex today, expecting to see a discrepency between physical and paper. None. They had coins and bars. they are available at the same markup over spot. physical scarcity wouldn't suprise me, but it is not happening right now.
The price may keep falling. It might stop. Gold behaves like every other commodity. It's hyper leveraged, hyper volatile.
I wish it weren't that way. A stable store of value outside of "modern finance" has an appeal.
actually I think the kind of gold that gets sold mostly is printed at very low cost
Can a commodity trade under its marginal production/maintenance cost for an extended period of time?
For the answer, see NG. For another answer, see global shipping.
The bust part of the boom/bust cycle REQUIRES that prices stay below cost long enough to destroy enough production (destroy, not temporarily shutter) to allow the next round of the boom.
Define "extended period of time."
Gold isn't your average commodity, either. Most are consumed and don't have long history as a monetary substitute.
For your consideration....another take on current events:
Step 1 = smash POG, induce margin calls, weak hands sell & move to cash
Step 2 = now that the is in cash, serve up the BANK HOLIDAY/BAIL-IN
Step 3 = JPM et.al. collect phizz at discount prices, cover paper shorts and any incidental phizz demands
Step 4 = inflate/smash $FDR (possible USSA default?)
Step 5 = unveil Rockefeller's SDR as your NEW WORLD Currency.
Step 6 = Agenda 21/FEMA camps/Drones in every pot.
Time line = TBD, your milage may vary.
Methinks this is simply positioning for the Cabal's broader, comprehensive vision....agreed, while there's lots of gaps, just trying to connect the dots.
<=====buy now
<=====wait for sub-twelve hundred
Definitive. Ok.
Both?