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Peak Gold? Goldman Calculates There Is Only 20 Years Of Gold Supply Left
Late last year, when looking at a Goldcorp slideshow, we noticed something surprising: the gold miner had forecast that 2015 would be the year when gold production would peak among the mining industry.
To be sure Goldcorp was really just pitching its own balance sheet, and was more focused on its far more levered gold-mining competitors going out of business...
... and hence facilitating "peak production" this year as one after another producer is forced to file for bankruptcy, than actually making a statement on how much gold remains to be mined in the ground. Because the last thing even the most healthy gold miner, with the lowest production cost wants, is to face a world in which their primary commodity is running out.
Which may just be this world.
According to a report issued by Goldman's Eugene King looking at commodity scarcity, the chart below "shows that there are only 20 years of known mineable reserves of gold and diamonds."
Some futher observations on gold and scarcity in general from Goldman:
The combination of very low concentrations of metals in the Earth’s curst, and very few high-quality deposits, means some things are truly scarce. Perhaps unsurprisingly, these are the so-called precious metals (and diamonds), and that their value is derived from the fact they are rare.
Their relatively scarcity, and the market’s belief that new discoveries will be limited, is what drives the price of these super rare commodities. Take diamonds as perhaps the most extreme example. A diamond has very little intrinsic value. Its value is determined by a belief that it is rare and, for a natural diamond, unique.
Gold has been used as a measure of wealth for more than 4,000 years, as the ancient Egyptians soon worked out that gold was not only shiny and heavy, but rare.
Of course, this analysis is meaningless in a vacuum: if the "known reserves" of gold plunge in the coming decade, no matter how many gold futures and GLD short sales are conducted by the BIS, the price will have to go up, and it will go up high enough to where a new surge of gold miners will come online and find thousands of new tons of gold reserves around the globe.
Unless they don't, and Goldman is correct that "peak gold" may have arrived. This will be even more true if over the coming years the long overdue fiat economic panic finally washes over the globe, and a revulsion toward central bank policies forces a scramble into gold whose value (if not price since fiat currencies will be redundant) soars.
The answer is unclear, but what is certain is that like the price of oil over the past decade and until last fall when price discovery finally became somwhat credible, what happens in the physical realm has absolutely zero marginal impact on the price of commodity which has about 100 ounces in deliverable paper contracts for every ounce in underlying. It will be only after the gold price distortions via the derivative market are eliminated that such trivial price-formation forces as supply and demand are once again relevant.
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The numbers for silver are even more dramatic
Wow, really?
More like "two weeks of Goldman left." Biggest dirtbag name in human history.
OT, but WTF..
Riddle me this..
Why might you not want gay flight attendants to become pilots?
20 years left of gold supply... you mean, just like the 1970 30 years oil supply announce ?
YOU ARE ABOUT TO HEAR A TREMENDOUS INTERVIEW..........
any stats on the tungsten supply?
It worries me when GS is going bullish on Gold.... they must be selling,... why?
And the reverse propoganda begins - they have acquired their position and now must convince the sheep to buy it from them!
I'd better hurry up and buy some then, cause if I do I'll be rich.
According to Scotiabank, all-in cost of production including capex amortization is $1,600 / oz for the industry.
That's the issue here - lower prices managed down at the LBMA are killing the mining industry.
http://seekingalpha.com/article/1472081-gold-prices-finally-hit-marginal-cost-of-production
In 50 years, there will still be 20 years of production reserves.
"The answer is unclear, but what is certain is that like the price of oil over the past decade and until last fall when price discovery finally became somwhat credible, what happens in the physical realm has absolutely zero marginal impact on the price of commodity which has about 100 ounces in deliverable paper contracts for every ounce in underlying. It will be only after the gold price distortions via the derivative market are eliminated that such trivial price-formation forces as supply and demand are once again relevant."
...Five years of reading the Hedge summarized in two pithy sentences.
Running out of gold? The industrial uses for gold are very limited. Much of the gold used for jewelry is eventually recycled. It would take centuries to exhaust gold reserves.
Goldman will never run out of BS however.
Exactly, I'm waiting for peak Goldman Sachs. Lying fuckers. De beers alone has a hundred year supply of diamonds squirreled away. They purposely keep supply off the market to make it appear "rare".
Another full load of bullshit from GS. Now silver on the otherhand may very well be entering a peak stage, but no one wants to mention that! Silver is being "unmined" at an alarming rate and is vital to so many things such as electronics, water purification, medical industry, etc.
Shhhhhhhh, don't tell anyone though. There could be a PANIC.
i did catch lloyd going thru my underwear looking for gold the other night....maybe they are telling the truth....nah, lloyd just likes sniffing mens underwear.....
Not to mention the fact that the diamond stat is utter BS. Just google "GE diamond". They already figured out 20 years ago how to make synthetic diamonds of any color up to 1.5 inches in size. Today, they can probably make single crystal diamond on the same scale as they do for silicon wafers (the substrate on which computer chips are made). Can you imagine a single crystal diamon 12 inches in diameter and three feet long. you could make thousands of diamonds for a few bucks each.
At any rate - I believe they made flat diamond wafers a decade ago which were about three inches wide. Diamond has the highest thermal conductivity of any material (better than metals) which is why it is ideal for being used as a substrate for computer chips - this is what they were testing back then. Unfortunately, this technology has had to be kept under wraps in order to satisfy DeBeers, so we have not benefited as we should have.
But the thing is - these are pure single crystal synthetic diamonds - no impurities, inclusions, defects or discolorations, and they are cheap to make. In all honesty, I don't even understand why diamonds even have a high price. Rubies, emeralds and saphires are much harder to make.
So... if we can make diamonds... out of carbon... how can we have only 20 years left?
I was wondering about the same.
Already several years ago De Beers admitted, that synthetic diamonds have reached such a quality, that only very few epxerts around the world even exist, who could tell the difference.
But never underestimate the Money Master's capabilities, when the time has arrived to push certain things. Reality does not matter. It's the price charts that create the facts. The art is to read their intentions correctly.
A 2 carat natural kasmir sapphire, if you can find one goes for about $25,000/carat, $50,000 for the stone.
A 2 carat synthetic kasmir appearing sapphire goes for about 50 cents a carat.
Hundreds of tons of synthetic diamonds could appear in a year and some have, but not a single one has ever fooled a qualified gemologist. Qualified = GIA or AGS certified gemologist. Sorry but your comment is simply wrong and I'll ask you to prove it with one single quality source.
There is no point comparing natural diamonds which have rarity value versus synthetics.
I see GS using Fig.2 (Debt stats) for gold producers, and to what I've predicted for a long time (2 years):
Wait for industry consolidation, i.e. wait for "Blood on the streets" of Wall St, and then p/u the remains at bankruptcy/short sales. SOP for GS.
If you want to rob a bank, you buy it. If you want to buy a goldmine or oil rig, you bankrupt it and then buy it. Wall St Ethics 101.
alchemy, bitchez...
It doesn't matter ! It's nothing but a barbarous relic anyway. Besides, it doesn't decay it just lasts forever... /s
Modern day alchemy attempts to turn carbon dioxide into gold.
Sounds like Goldman is dropping out of the gold suppression racket and going long....
Exactly the opposite...........they know gold is going to be pushed down as the dolloar gains value and are getting people scared to buy in just like they always do, it's another GS headfake.
My goodness that avatar is distracting.
doesn't dropping Gold prices signal depression...as it signals inflation....if Gold drops guess what it is telling you?
venturen, i'm not sure if there's some hidden sarcasm in your remarks/questions but im going to respond to you in earnest as if you are genuinely curious and want to know.
in a market that actually functions as a market what you said is true. but this 'market' is so heavily manipulated, the price of gold is being used as a policy tool. if the true value of gold were allowed to manifest, it would undermine the fiat currency system which is already straining at every turn and requiring more obscene and extreme efforts to keep it propped up as a store of value in people's minds. It may seem extraordinary that the price of a global physical commodity like gold could be so easily manipulated, but just remember - if you are a central bank that has virtually unlimited ability to print money, well.. that means you are willing to 'lose' billions in put-option buys that need to be not only continually rolled over, but also increased in size as time goes by. (i'm just using the example of buying puts to demonstrate how someone without a care for losing value in fiat currency terms could manipulate the price of a real commodity that 'trades' on an exchange).
ultimately, the proof is in the pudding though, and there are countless examples of 'smoking guns' that prove this point. searching through ZH's archives and reading people's commentaries should give you what you need to understand assuming you're willing to invest the time.
hahaha i thought the same exact thing..(you were making a joke about KWN.com right?)
... BROUGHT TO YOU BY (insert name of latest fly-by-night gold, silver, platinum, and diamond mining financier), WITH HOLDINGS IN MEXICO, ARGENTINA, AND SOUTH AFRICA.
lol yeah. i mean, he does have some cool interviews but cmon man, you gotta switch up your intro every once in awhile!
In the 1970's it was said that we would PEAK in CONVENTIONAL oil in 20-ish years. NOT that we would run out.
We Peaked in 2005 in Conventional(Jed Clampet type) Oil.
Diamonds are easily grown in labs currently, they are perfect from a jewelry perspective in fact so perfect that their perfectness is what is used to identify a lab grown one.
The diamond scam will collapse with the rest of their fake scams, ie fractional reserve debt money.
De Beers:
Who would have thought?
pods
You cannot make artificial gold... Diamonds, just say a number !
I like my carbon in sheets, rolled into fishing rods of excellent sensitivity.
Diamonds are okay when one has to cut or grind, but to look at? Eh.
When I found my first flake of gold (it was TINY) it about gave me palipitations. No carbon will ever do that, even Buckyballs.
pods
If in doubt, go to the NY Diamond District (between Fifth Avenue and Sixth Avenue in midtown Manhattan) and take a look around as to who owns the places. Give you 3 guesses and the first 2 don't count.
Hint: Per Wiki... "Many deals are finalized by a simple, traditional blessing ('mazel und brucha') and handshake. The Diamond Dealers Club is an exclusive club that acts as a de facto diamond exchange and has its own synagogue."
That being said, I can see the logic of limiting Cartel Membership for something like diamonds to a very small and close-knit (closed) group, where Trust is key and is baked in via Cultural and Religious bonds.
Someone posted something about this the other day. Apparently you can extract gold from soild waste (ie SHIT).
http://www.theguardian.com/science/2015/mar/23/gold-in-faeces-worth-mill...
I made that guess two days ago, almost instantly. I was surprised then that about half the readers here down voted my guess. I see you are having no better luck. Note to all. His break up with some girl friend doesn't make him straight. Most likely the meds he was put on since he saw a doctor 2 months ago set him off. Living in a closet never helps.
I made that guess two days ago, almost instantly. I was surprised then that about half the readers here down voted my guess. I see you are having no better luck. Note to all. His break up with some girl friend doesn't make him straight. Most likely the meds he was put on since he saw a doctor 2 months ago set him off. Living in a closet never helps.
The numbers for silver are even more dramatic
I totally agree according to the research that I have done...
Peak sand... I kid you not:
http://www.wired.com/2015/03/illegal-sand-mining/
On top of that add 'peak truth'. The American Institute of Architects convention in Atlanta this year will debate and vote on the 'collapse' of 7 World Trade Center building on September 11th, 2001. Is it hot in here?
http://www.blacklistednews.com/Major_coup_for_AE911Truth_%E2%80%93_Ameri...
Ignatius, that story about sand sounded so familiar:
Corruption and violence will stymie many of even the best-intentioned attempts to crack down. At root, it’s an issue of supply and demand. The supply of sand that can be mined sustainably is finite. But the demand for it is not.
Battles among and against “sand mafias” there have reportedly killed hundreds of people in recent years—including police officers, government officials, and ordinary people ... “In our system you can easily buy anything with money—witnesses, police, administrative officials,” a legal professional close to the case tells me, on condition of anonymity. “And those guys have a lot of money from the mining business.”
Of course, the same basic system of organized crime, surrounded by controlled opposition, was behind the events on 9/11/2001. It is theoretically interesting and important to use "the highest standards of science-based investigation and analysis" regarding the astonishing ways that three World Trade Center buildings suddenly collapsed. Those can NOT be explained consistently with the basic laws of physics, like the way gravity works, and the structural properties of the substance steel, EXCEPT as the result of some kind of controlled demolition, which MEANS INSIDE JOB, FALSE FLAG ATTACK.
However, that conclusion then returns us to the original problem exemplified by the limits of sand being actually controlled through the fractal patterns of the applications of the principles and methods of organized crime, i.e., corruption and violence. Anyone who spends enough time investigating 9/11 Truth will discover that America has become the greatest overall example of the ways that civilization is controlled through applications of the methods of organized crime. The events on 9/11/2001 were merely the single most spectacular symbol of that, so far.
As we reach the real limits of diminishing returns regarding being able to strip-mine the planet's natural resources in every area that one looks at (while all of those issues are developing themselves at interrelated exponential rates), the one thing that remains constant is that the more one learns, the worse it gets, because of what was ALWAYS the case, namely that human beings operated as entropic pumps of energy flows, which matched the principles and methods of organized crime, while that is becoming more and more BLATANTLY OBVIOUS!
I have basically the same attitude towards the relatively more mainstream 9/11 Truth movement as I do towards the mainstream Drug Policy movement. Both call for "the highest standards of science-based investigation and analysis" WITHIN their own little domain. BUT, BUT, BUT, they do NOT apply the same approach generally toward understanding government itself using "the highest standards of science-based investigation and analysis."
In EVERY AREA that one examines, from sand, to gold, and so on and so forth, the same basic patterns are discovered, which are that human beings operate as entropic pumps of energy flows, that are best described as behaving consistently with the principles and methods of organized crime. Indeed, governments are the biggest form of organized crime, controlled by the best organized gangs of criminals, which can be perceived in EVERY AREA, such as the "War on Terror" as well as the "War on Drugs."
Furthermore, as the limits of diminishing returns from being able to strip-mine a finite planet's natural resources at an exponential rate are becoming more and more acute (with many possible peaks happening with the life time of those alive today) the intensity of resolving those issues through more extreme manifestations of the methods of organized crime, on every level, in every way, becomes clearer and clearer ... It is at that point that I tend to recommend that "WE" SWITCH GEARS, from regarding organized crime as an aberration, to regarding organized crime as necessarily the result of any adequate analysis of any social situation, because of the basic ways that human beings and human civilizations MUST operate as entropic pumps of energy flows.
As the human species runs into the various limits of diminishing returns from strip-mining the planet, it is theoretically imperative that we would have to develop radically different integrated systems of human, industrial and natural ecologies. Of course, that would include different ways of operating political economies. However, at the present time, it is practically impossible to develop any better political economy, to respond to the various peak resource dilemmas, approaching at exponential rates, since ALL of those are actually matched by the development of Peak Organized Crime, which become expressed as Peak Social Insanity.
The GREAT IRONY with respect to systematically applying "the highest standards of science-based investigation and analysis" is that generally demonstrates the initially PARADOXICAL PROBLEM that governments are the biggest form of organized crime, controlled by the best organized gangs of criminals, while that cascades down from there as fractal patterns of organized crime throughout everything else.
The central issue in the dilemmas with respect to natural resources being limited are corruption and violence. Those dilemmas are compounded by many orders of magnitude by the degree to which the biggest bullies' bullshit social stories have been able to reverse the meaning of almost everything, including even the concept of entropy had its meaning inverted by an arbitrary minus sign inserted into the entropy equations of thermodynamics and information theory. Hence, the upshot of a more general application of "the highest standards of science-based investigation and analysis" is that one arrives at a theoretical understanding of the absolute inevitablity of there necessarily being "corruption and violence."
However, at the present time, we are rushing into the limits of being able to strip-mine the planet's natural resources at an exponential rate, while that was overall being supervised by the biggest gangsters, the banksters, who were applying the methods of organized crime to control the biggest governments. It is the SAME PATTERN, only on such a large scale that most people did not previously perceive that, while now, that is also becoming more blatantly obvious.
That is how and why I have developed my standard response to all of the various issues regarding the apparent Peak Anythings, approaching at exponentially accelerating rates, namely that the only genuine solutions require developing better organized crime, which is the necessary reality of any better government, which has as its necessary central core some violence manifesting in the forms of the death controls through the murder systems.
At the present time, the first and foremost ways that the limits of diminishing returns are showing up is through our fundamentally fraudulent financial accounting systems, driving wilder oscillations, due to the development of the previous debt slavery systems to generate numbers which become debt insanities. Those debt insanities provoke volatilities which are like economic manic depressive syndromes, headed towards economy psychotic breakdown situations.
The essential problem that the human species faces is that all of the other kinds of ways in which we have achieved relatively greater applications of "the highest standards of science-based investigation and analysis" have NOT happened to political science in general, because the ONLY way to do that is to regard human beings as entropic pumps of energy flows, which necessarily matches the principles and methods of organized crime. That insight is resisted and obstructed by the ruling classes, as well as most of those they rule over, because of the ways that the currently established systems are almost nothing but organized crime, surrounded by controlled opposition groups, BOTH of which promote the same false fundamental dichotomies, and related impossible ideals, because BOTH are dominated by similar sorts of professional liars and immaculate hypocrites.
While there are plenty of theoretically possible creative alternatives, which may be developed to deal with running into the limits of diminishing returns from being able to strip-mine natural resources, (while FOR SURE continued exponential growth of such strip-mining is NOT endlessly possible) the BIG PROBLEM is that those creative alternatives must have at their center alternative death control systems, as indispensable to any development of the kinds of alternative human, industrial, and natural ecologies, which would be forced to adapt to the limits of the environment.
Obviously, at the present time, it is practically impossible to imagine enough people understanding themselves by applying "the highest standards of science-based investigation and analysis" BECAUSE they would have to face the basic facts that all human realities are relatively organized systems of lies operating robberies. Furthermore, they would have to face the facts regarding how those who were the best at doing that became the most wealthy and powerful people, because the established systems became based on the maximum possible deceits and frauds, since they were the most socially successful forms of "corruption and violence."
Moreover, during all of the time when the planet's natural resources were being strip-mined, the economy was based on being able to turn those natural resources into garbage and pollution, as fast as possible, in order to keep the debt slavery treadmills going. In the end, all of that garbage and pollution was accumulating on the land, and in the oceans and atmosphere, and accumulating in ways which were changing their basic chemistry.
For those reasons, I believe that the runaway social polarization being driven by triumphant organized crime becoming so socially successful, that the biggest bullies' bullshit world view controls most of its apparent opposition, will be TRUMPED by the ways that civilization so totally controlled by the unacknowledged and unrepentant methods of organized crime develops attitudes of the maximum possible evil deliberate ignorance towards itself, and what it is doing to its environment. As an illustration of the potentially plausible ways that the irreparable destruction of the natural environment could TRUMP all of the other concerns regarding running into the real limits of being able to continue to strip-mine the planet at an exponentially accelerating rate, here is another quite disturbing article to consider:
http://jumpingjackflashhypothesis.blogspot.ca/2012/02/jumping-jack-flash-hypothesis-its-gas.html
One of the basic reasons how and why the most constant feature that I have found throughout all of my studies has been that the more I learned, the worst it got, was that ALWAYS, wherever one looked, one would discover developments on EXPONENTIAL GROWTH CURVES. Therefore, Peak Strip-Mining, and Peak Pollution, were ALWAYS rushing at us, faster and faster, for those who had the education, information and imagination to perceive that was happening ...
Of course, at the same time, is also become more painfully obvious that the established systems of organized crime, surrounded by controlled opposition, were going to continue to do their best to deliberately ignore those prospects. Indeed, it is plainly obvious that the vast majority of people are living in ways which deliberately ignore the limits to being able to strip-mine a finite planet. Almost everything, along with almost everyone, was set up to try to continue to do that, as much as possible, for as long as possible.
The upshot appears to be that the tragic trajectory of learning more and more about those problems is that they always get worse and worse ... with the most probable futures being catastrophic collapses into chaos and mass murders, during the next Century or so, while, after that, the human species may go extinct. While I would recommend that "WE" SHOULD address those problems by applying "the highest standards of science-based investigation and analysis" what I EXPECT to happen is actually much more criminally insane forms of "corruption and violence."
The main reasons for those conclusions are that it is NOT possible to apply "the highest standards of science-based investigation and analysis" to general political science without ending up embracing how and why human civilizations operate according to the principles and methods of organized crime. Therefore, running into problems like anything from Peak Gold production, to Peak Sand production, ALL revolve around the imperatives to resolve those problems through changes in the death control systems, in one way or another, sooner or later ... while every day that is postponed means that the options for how to actually do so are diminishing.
Silver has industrial and medical uses, gold doesn't. Anyway, known reserves doesn't mean there are more deposits out there that haven't been found yet. Back in the 1920's there was only 20 years supply of oil reserves left. Until they found more and more.
And yet the EROEI just keeps marching downwards.
There are so many reserves in the UP. Copper, silver, nickel, Pt, Pd, Uranium and probably gold. There is a huge zinc dome located near Stevenson, jst south of Menominee.
http://www.bitterrootresources.com/s/michigan_why.asp
It's there, just waiting for the right time.
>Silver has industrial and medical uses, gold doesn't.
The biocompatibility of gold has meant that it has been used in medicine for centuries, particularly in dentistry.
Historical aside:
Gold Teeth collected in crematoria were classified as Nazi "Non-Bullion Gold" according to the NAZI GOLD: The British and Allied attempt to deal with loot from the Second World War and the implications for the Tripartite Gold Commission" published by "The Holocaust Education Trust, November 1997 - Second Edition. In Auschwitz, a laboratory for melting gold (Goldgiesserei) was built in Crematorium III, where gold teeth as well as other gold-containing loot were turned into ingots.
actually 24k gold is used extensively in fiducials used for triangulating lung tumors being ablated by a CyberKnife.
Put all that fracking tech and out of work drillers to frackin' some gold in them thar' hills !!
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do... www.globe-report.com
abiotic gold bitchez ~ lol
FTW!
Fucking awesome..
At current rate of price decline It should be about $200 a Z by then...
i call bullshit
At that point, they will just have to make sure there are at least 10,000 paper claims per deliverable ounce in the COMEX warehouse to keep the price below $1,200/oz.
Wake me when Goldman drops Peak Paper on us.
maybe thats their angle? keep prices low and mine it to the point that it loses its intrinsic properties. well that still leaves silver, and lead for that matter
goldman ass sack are full of shit. Diamonds? The debeers stock pile is enuff to last 1000 years. Sounds like moar jew spew.
Yep.
Infinite supply of paper and ink.
Really? Ain't no trees on Mars.
I hear water is pretty expensive out that way too.
These are "digital dollars." These cheap fucks can't even afford a roll of toilet paper. Wipe their face with shit and see how they like it.
Salt water can power the new batteries developed by Germany.
To keep entering the 1's and 0's that make the magic happen.
Of course GS is absolutely trustworthy and has only our best interest's at heart. We were supposed to run out of oil according to 'expert' decades ago and gold, unlike oil, has a tendency to stay around forever once dug up........
20 years bitchez.
Running out of gold?
This means two thing for certain:
1) Stocks totally unrelated to gold, to the moon; and
2) physical gold to the basement.
New Normal: Nothing reduces the price of hard assets like scarcity. When we actually run out, price to zero.
Says to me cartels are in the offing.
You want free shit asstard? Here it comes.
What COMEX wharehouse supply?
Morgan has 50 tons of silver in the vault.
They ain't the one's minting silver dollars.
That would be THE GOVERNMENT.
Find your own damn gold Governmet cockfag.
Fixed for you.
You think ta Government employee has 13 billion for his stupid fucking ship?
Those fucks don't even know what a dollar means.
The irony of course is that as they blow up on municipal governent after another "suddenly one dollar means the world."
Dear God,
We go from peak oil to peak gold, to peak silver. peak _____.
The only thing I want is peak politicians and peak central bankers.
So why are Goldman selling gold? They must be, if they're flogging peak gold.
Answer: They're betting Janet will soon pull the trigger on rate hikes.
The only signal I'm getting from this report is 'SELL BITCHES!'
If this is true, then destroying gold miners really backfired for the banks. But today's executives will be long retired and so they make these decisions.
cigarEngineer If this is true, then destroying gold miners really backfired for the banks. But today's executives will be long retired and so they make these decisions.
---
The way it works is to destroy an industry so you can buy it cheap. Look at after 1929.
After 1929, PMs collapsed with every other commodity. Mining stocks were bought cheap and during the depression, mining stocks rose while gold and silver physical still suffered.
It was the banks and oligarchs that bought those mining stocks cheap and sold physical metals. Sound familair to today?
You see they have staying power. That means they can afford to stay in position even if losing for a couple of years, knowing that they will get a bigger return on investment when the market turns around. They can continue to sell and squeeze people that are bullish. It's like a guy with $ 1 million to speculate bull prices in gold fighting a hedge fund or bank with billions. You ain't gonna win. And that isn't manipulation, That is reality. A person that has more money has more power and can out finance you. People only think that more money works in outbidding in bull markets. But more money also works in reverse by the staying power.
Near flawless (at the atomic level) diamond of any color you please is straight-forwardly manufactured. The industry and women are cultists of "natural" diamond, each for their own reasons. Costs way less than $100/ct. to make. Gold can not be manufactured, but at the right price can be obtained from: deep sea manganese nodules and nickel-iron asteroids.
Google how much gold in earths sea water. Not as much as you would think, even if you extracted 100%, which is impossible.
You're on glue if you believe a word Goldman Sachs says.
peak lies.
there's plenty of diamonds in the ground that is 100% . i'ts CARBON which is in abudnance.
gold. probably not as much but plenty left.
I'm guessing that you are not a geologist.
Just print some moar.
just dig up the Vatican - lots of gold lining their catacombs
GS talking their book again - guess what - GS is long gold and caught so they puke crap to bid the gold market
have fun with that bloated inventory GS
Barbarians
"what happens in the physical realm has absolutely zero marginal impact on the price of commodity"
Literally folks, nothing to see here. Move on...
Goldman just doesn't want any talk of a return to a gold standard. It would limit their ability to rip their clients off- unlimited fiat=unlimited fees.
I respectfully disagree with the statement that paper contracts will always dominate the price of physical precious metals. The value of all available precious metal is insignificant compared to each segment of available cash, shares, bonds and real estate. In case of significantly increased demand the dominance of paper gold would fade. This is exactly why the central banks need to convince investors that the purchase of precious metals is not worthwhile. It is a difficult argument in a ZIRP world but nevertheless it seems to be sufficiently credible to be heard. Hope for rising rates (I mean substantially rising rates) dies last
Oh, too bad. I thought the article was Peak Goldman.
Who knows what sources are being hidden due to price suppression?
If you were a gold mining corp and you found the Mother of All Motherlodes, would you reveal it now? Or wait until the inevitable, if far-off price correction?
Honestly how stupid do they think people are? What about the TRILLIONS OF CARATS discovered in ONE mine in 2012? Absurd liars. That's all any of these guys are. http://www.nydailynews.com/news/world/huge-diamond-field-boasting-trilli...
I, personally, don't like it when Zero Hedge post articles like this. I think it's taken as a given that we (the readers) do not trust the main stream bankers (Goldman Sachs, JP Morgan, BNP Paribas, etc) and I'm pretty certain Zero Hedge don't trust them either. So what can we possibily glean from this article? The only thing I can think (and someone has already made this point) is that GS are preparing to dump gold and, hence, are doing a little pumping (insert your own dirty joke here). But even this is of little use because:
1. We're still not trusting GS and, basically, taking the opposite view of what GS are declaring.
and 2. Any self respecting ZHer aren't going to dump (or buy) their gold because a despised bank has made a statement about it.
Though, I have to admit, PM's have been weighing on my mind recently. I don't know whether to go heavy on gold, heavy on silver or play it 50-50. I'd appreciate any advice my fellow ZHers have. Also 2 other things you could help me with:
1. Could someone please explain this running joke of about one's gold and silver being sunk in a boating accident?
and 2. Could someone please explain this running jokes about bankers and nailguns?
I keep reading these in the comments section and I keep laughing....but I don't know why!
As always, I wish you all well from the UK. :O)
2) http://www.zerohedge.com/news/2014-02-07/4th-financial-services-executiv...
http://i.imgur.com/stuztfC.jpg
Thank you very much for explained that joke to me. Much appreciated.
I don't know whether to go heavy on gold, heavy on silver or play it 50-50.
I can't give you advise on which to go all in with but the G/S ratio is above 70 and should be at 15. Do your math.
Thank you for your advice. Much appreciated.
I guess decison is based more how much I disbelieve the misinformation.
For what it's worth and with no expert knowledge whatsoever, have at current prices, 2/3 gold and 1/3 silver. Again, not by weight, but current prices in dollars. Has kind of settled in at that balance over several years, for no particular reason. Don't even know what the current ratio for the price is, only that the relative availability in the earth's crust at 17 to 1 or the consumption of silver for industrial purposes not factors in the arrival of this "balance."
"Boating accidents" is an inside joke how preppers will explain to confiscatory governments how they somehow no longer have their contraband guns, PM's etc. But governments would never take what doesn't belong to them would they?
Thank for the information. Much appreciated. :O)
I'm about the same as Hubbs. 2/3rds gold and 1/3rd silver by value. Not really by design, it's just worked out that way.
but, but,....the wackos tell us there are MILLIONS of tons hidden away....secretly produced by miners with picks before the era of massive surface mining. Yep, zee secret black gold that will make all the real yellows stuff worthless....'cept it doesn't exist so I think I'm OK with my tiny stash.
Graph is extremely misleading. Barrick isn't going bankrupt any time soon. They're one of the lowest cost producers, they own some of the best mines in the world, and they have relatively good cash flow. Last year ended with 2.3 billion cash from operations while depreciation/amortization was only 1.6 billion. Being deeply in debt doesn't mean you have negative cash flow.
Graph isn't at all misleading if you read it, for chrissake. GG and AEM have the lowest ratio of debt to market cap. That would be good, eh?
There's endless supply.............if the price is worth digging for! If not, no supply.
I store bitcoins in my gold!
this is the kind of report that will be used to justify Asteroid mining.
butt before that the Hemorrhoid mining (of you & me).
Yeah, the name Goldman tells us they have a conflict of interest.
Good point. Supply is what it is till technology changes the game, new sources are found, substitutes are found, better materials are found.
Like Oil and Gasoline. Are there substitute Energies for Transportation, cars, shipping, and Electricity production?? Could be that they are suppressed or the Technology is under control of a few who profit from the current system.
Business and Investing is hell because of this.
Look at those that bought into Well Drilling last year.
My dad had asteroids...
Looking at the last Figure, I see "Opportunity" when looking at Supply and Reserves:
A. Play the High Supply, Long Reserves game:
1. Buy IRON. Use Steel beams to build a solid, multi-generational house that will last for centuries.
2. Buy COAL. Use a high-efficiency coal stove/furnace to heat, and complement with Solar Panels.
B. Play the Low Supply/Reserves game: Screw AU or cartel*-controlled Diamonds.
1. Buy ZINC!
2. Buy Nickel and Copper.
* Cartel in Amsterdam, NY
"of known" is the keyword
it's like you want to dig out a basement to make a foundation, you estimate the size and time required to remove the soil, you have a known quantity, as a pit where known (estimated) reserves lie
but if you haven't looked everywhere, it's unknown
most annoying question asked to caving guides,"how many unknown caves are yet to be discovered?".
one thing we know for sure, they won't stop lookiing for more
20 years from now you'll be able to take a picture of geology with your cellphone, get an instant geological report on all the minerals your camera captured, and pull up an app to see if a robot mining operation is economically feasible.
The era of mining and resource retrieval hasn't even begun yet.
Right now humans are like earthworms, virtually blind to the "real world".
Of course, you can do something very similar today with an x-ray frequency analyzer, with quantitative concentrations of specific minerals of whatever you point it at.
But please, wait for your "app", which will automatically share your claim with the NSA, app developers, and whoever else includes the malware in the app... of course, maybe that next iFone will produce the hard x-rays needed for such an analysis.
they know some people know how to make diamonds right?
If this forecast is as robust as the peak oil forecast in 2009, then gold will plunge 50%. But oil is not gold...
Utter tripe... There is 10Bn/t of coal just in one area of SA (CZA.lon). Tanzania has a shit load too in Rukwa region (Kibo.lon, EDL.lon). FAR more than 20 years of reserves and probably far more in long term resources. There are large Gold reserves coming up... AMA.lon and the posibility of old mines having potential for large resource in Austria (NMA.lon).
To Chuck DeBongo:
I will give the story as best as I can remember...maybe someone will have a better recollection.
After a series of stories about gold confiscation and other reasons why to keep your stash information quiet, some guy writes a response here on ZH along these lines :
"I was worried about confiscation and other government trickery but alas, no more. Last weekend, while out fishing on a very deep lake, the weather turned on me and a violent storm came up. The boat capsized and my beloved AU sank to the bottom."
1) The fellow did not elaborate why he took his gold fishing.
2) The number of boating accidents since then has skyrocketed....lol !
ZH was noting all the banker suicides last year when along came a strange one where the "banker" suicided himself with a nail gun. There was no doubt that the guy was dead, the strange part was he had about half-a-dozen nails in his skull.
Along the lines of this old joke.
The Alabama sheriff was taking questions about the recent death of a teenage punk. There were inconsistancies regarding the coroners report.
A reporter asked, " Sheriff... can you confirm the victim had 15 bullets in his body?"
The Sheriff replies, "Yes...worst case of suicide I have ever seen".
Have a golden day !!
Thanks for that! Made me smile! :O)
Just another BS story from GS! 80% of all gold remains in the ground...go look it up (credible sources that is).
Good grief, what abject nonsense. http://www.acting-man.com/?p=35868
What a stupid stupid claim! OMG I can't belive that ZH would stoop to such a lie. Almost all the gold which has ever been mined still exists, it's not a consumable, it just changes hands. There is no shortage! If anything there is an oversupply which resutls in gold sellers constantly trying to talk up the price each day in this blog with some new sensational statistics.
So if there is $80 trillion worth of gold throughout the world, and the CIA world factbook guestimated the planet is valued at $700 trillion (as of 2008? I'm guessing, I heard that the number came from the world factbook)- the arbitrage value is what? .11%? If the gold in the world was valued at only $70 trillion, then it's 10% of the world value.
World's GDP might be $87.25 trillion (PPP)in 2013, $74 trillion GWP
The world inflation as 3.9% in 2013, yet everyone is crying about "deflation" and dropping interest rates.
https://www.cia.gov/library/publications/the-world-factbook/geos/xx.html
The simple reason why they state we are at peak Gold is that all the easy Gold has been mined. Lots of Mines are now mining 2 grams of Gold per 1 ton of Soil and at the price it is now would be to costly to mine. There is still plenty of Gold about, but, as I stated very little per ton and the place it could be makes the cost to high Here in Australia lots has been found, but cost wise to expensive to mine.
if there is no supply they will say it is a good reason why it cannot be money.... silver is consumed, so that can't be money either... therefore we must use the US dollar
so my 3 cent per share gold mine will go to 500 dolla per share, can't wait