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Miners: We're running out of gold

 

Gold production will continue to fall, despite a brief boost in 2009 and soaring prices, as deposits are exhausted and new discoveries remain elusive, say miners.

 

In terms of production, "2009 is the outlier as far as the trend," Omar Jabara, spokesman for US-based Newmont Mining, the second-largest gold producer in the world, told AFP.

 

Overall, "it's a fact that gold production from mines has been in decline since 2001 and has gone roughly from 85 million ounces to about 75 million ounces a year," said Vincent Borg, spokesman for number one producer Barrick Gold.

 

"It sort of goes down about one million ounces every year and our forecast is that it will continue to decline despite the higher price" for gold nowadays, he said.

 

Almost everywhere, mineral deposits are being exhausted and new deposits are not being found fast enough to replace them, these experts explain.....

 

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This is from Bill Murphy's Midas report on lemetropolecafe.com, which is a very good source of info I recommend all gold investors subscribe to.

 

When will the ever learn? A major gold producer exec told a colleague yesterday that with these prices, it ought to be a good time to hedge their positions. And what will they do with those positions at $2,000 gold? Yep, "Never have so many known so little about their own market!"

 

The silver action is beyond terrible, courtesy of JP Morgan and friends. The Gold Cartel has lost control of the gold market, so they are hideously capping the price of silver … and for good reason if you are JP Morgan and the US Government. Should silver take out $19, other shorts will PANIC the way gold is trading, and they will cover, blowing up the JP Morgan short position. Silver could go to $25 in a heartbeat. In the meantime Morgan is praying for gold to correct, so it can really slaughter the silver price … at least try to.

 

IN TIME, that sort of bullish price reaction to this blatant suppression is inevitable. Just as it was inevitable that the dollar would take out 75 to the downside with vigor and the euro would top 1.50 again.

 

All year Adrian and I have been touting a coming Commercial Signal Failure in which the commercial shorts get so buried by the price rise, they are forced to cover. Well, it is at hand. The gold open interest fell a stunning 28,254 contracts to 521,253. This means that commercial shorts, other than The Gold Cartel, are throwing in the towel. However, for gold to come off its highs like it did yesterday, it means The Gold Cartel was selling even more, further isolating their position.

 

I REPEAT… there is a massive physical SHORT position out there. Those shorts, outside of the bums, are trying to cover and attempting to do so with physical demand surging by the big boy investment crowd. A Commercial Signal Failure is not a one day event. Today was the beginning of one.

 

That notion is confirmed by the silver action. Its open interest fell a steep 8,343 contracts to 136,162, which is the largest drop I can recall and it occurred on a modest down day. Morgan must have been selling like crazy, while other commercial shorts covered. It certainly wasn’t spec longs getting out.

 

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Mystery solved, it was double counting :lol:

 

Big error behind missing gold at Royal Canadian Mint

 

RCMP have solved a bizarre mystery: How did $15.3 million in gold vanish from the Royal Canadian Mint? And while their report is still two weeks away, CTV News has learned the answer.

 

"Senior government officials say there was a colossal error at the mint itself," said CTV Ottawa Bureau Chief Robert Fife on Tuesday night.

 

Mint officials double-counted some gold bullion they sold, and also underestimated the shrinkage of the gold during processing.

 

The federal government had withheld bonuses for mint executives until the mystery was solved. It's unclear whether those bonuses will still be paid out.

 

Junior Transport Minister Rob Merrifield, who's responsible for the mint, called in the RCMP on June 9 after he learned that an audit would not "rectify the problem" of the missing gold. That's about 10 weeks after the government first learned of the missing gold.

 

The Deloitte and Touche audit cost taxpayers $360,000.

 

Ottawa now requires the mint to report on inventory levels of metals every three months.

 

Last month, Liberal critic for Crown corporations Joe Volpe said the security, reputation and the quality of the Canadian Mint's product has been compromised.

 

In early June, it was discovered that there was an unreconciled difference between the value of gold on the mint's books and the physical count of gold for the 2008 fiscal year.

 

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Gold Is Rallying Because....

 

Gold is the ultimate currency.

 

It resists the attempts by the monetary authorities to debase it, because except for concerted attempts to suppress its price through non-profitseeking selling at key market points by central banks, and naked short selling by the global commercial banks in the paper markets, gold cannot be created and controlled by financial engineers like Ben Bernanke.

 

It provides a refuge, a store of wealth for private citizens during a period of general currency risk.

 

A simple chart should suffice.

 

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Good for the gold price but maybe not so good for some of the miners?

 

I wonder if more marginal companies will struggle to produce profitably as the available ores decline in quality?

 

Thanks to Pixel8r for keeping us up to date with some of the better and more interesting gold articles.

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Sri Lanka Buys 10 Tons of IMF Gold

 

Another slug of IMF gold is gone to another central bank: it was reported today by the IMF:

 

The International Monetary Fund (IMF) announced today the sale of 10 metric tons of gold to the Central Bank of Sri Lanka. The sale was conducted on the basis of market prices prevailing on November 23, 2009 with proceeds equivalent to US$375 million (SDR 234 million). This transaction is part of the total sales of 403.3 metric tons approved by the Executive Board in September 2009 (see Press Release No. 09/310), and it adds to the total of 202 metric tons already sold to the Reserve Bank of India and the Bank of Mauritius (see Press Release No. 09/381 and Press Release No. 09/413).

 

As previously announced (see Press Release No. 09/310), in accordance with the guiding principle of avoiding disruption of the gold market, the IMF’s Executive Board adopted modalities for the gold sales consistent with guidelines it had earlier established. In particular, the Fund is standing ready for an initial period to sell gold directly to central banks and other official holders that may be interested in such sales. Thereafter, on-market sales of any amounts remaining from the 403.3 tons would be conducted in a phased manner over time, following the approach adopted successfully by central banks participating in the Central Bank Gold Agreement.

 

As previously indicated, the Fund will inform markets before any on-market sales commence, and will report regularly to the public on progress with the gold sales.

 

The big question is where is China? The Chinese are on the hunt for gold and other non-dollar assets they can convert their dollars into, as they watch the continuing slide in value of their U.S. asset hoard. This will no doubt continue the rally in gold.

 

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Good for the gold price but maybe not so good for some of the miners?

 

I wonder if more marginal companies will struggle to produce profitably as the available ores decline in quality?

This should be very good for the juniors who have been developing their deposits though. Just look at the action in Tyhee (TDC) today +33.3%.

 

I guess the majors will just start buying juniors, as it's cheaper to buy them than find the gold in the ground, for now.

 

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The big question is where is China? The Chinese are on the hunt for gold and other non-dollar assets they can convert their dollars into, as they watch the continuing slide in value of their U.S. asset hoard. This will no doubt continue the rally in gold.

I am beginning to suspect that China is behind much of the "Cash4Gold" type operations.

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I am as nervous as I am excited about gold. I can't believe how high the price has gone.

Now that we're well over 1000, give or take 100 doesn't seem like such a big deal any more.

 

1192.20 at the mo'.

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I am as nervous as I am excited about gold. I can't believe how high the price has gone.

I can't believe how long it is taking to rise, almost like it is happening in slow motion. Think the cartel have lost their grip on gold now, just silver to break loose now.

 

Slowly, slowly, catchy monkey ;)

 

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I am as nervous as I am excited about gold. I can't believe how high the price has gone.

 

You've seen nothing yet. gold will go to $5000 and stay up there (give or take a little). In the course of the next few years we'll see falls/rises of $100's of dollars in a day (possibly even an hour).

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Bob Chapman just an hour ago - Very important information!

 

http://www.discountgoldandsilvertrading.net/Radio_Show.htm

 

scroll down to wednesday.

 

Just from source...New Tarp rules 1/1/2010

 

2035 banks in danger of collapse!

 

I wonder what this will do to Gold/Silver.

Just listening now, thanks for posting. Agree it sounds very important.

 

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Bob Chapman just an hour ago - Very important information!

 

http://www.discountgoldandsilvertrading.net/Radio_Show.htm

 

scroll down to wednesday.

 

Just from source...New Tarp rules 1/1/2010

 

2035 banks in danger of collapse!

 

I wonder what this will do to Gold/Silver.

 

Very interesting if true. I wish you'd posted it earlier - it's way past my bed time!

 

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Bob Chapman just an hour ago - Very important information!

 

http://www.discountgoldandsilvertrading.net/Radio_Show.htm

 

scroll down to wednesday.

 

Just from source...New Tarp rules 1/1/2010

 

2035 banks in danger of collapse!

 

I wonder what this will do to Gold/Silver.

Scary! :o

 

Everybody should listen to this. Direct link to mp3 page:

http://libertyarchives.com/farlive/FS2_WED.MP3

 

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Very scary if it plays out, Bob is 2nd to none IMO!

 

Best of all his info is free...

 

He'll be writing more on this in his saturday issue, and over the next few weeks by the sound of it.

 

For those of you wondering where -

 

http://www.theinternationalforecaster.com/

 

And his youtube channel -

 

http://www.youtube.com/user/TheBobChapmanChannel

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I guess this will not be news to you guys but what do you think of this? It appears to suggest gold is markedly undervalued at this point.

 

Goldundervalued.jpg

 

It is GLD priced in Euros and suggests that we could be in for $1500 towards the end of the third quarter 2010.

 

Look at the points where there was a double top in the ratio, around mid-November 2007 and mid-November 2008. From these points gold went on to rally approx 28%, 30% respectively.

 

Now look where we are, another double top in the ratio..... . . . . !

 

Also;

 

PortendsGold1500-1.jpg

 

I'm going to have to get my skates on

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$1650 Gold Is Upon Us Posted: Nov 25 2009 By: Jim Sinclair Post Edited: November 25, 2009 at 8:32 pm

Filed under: General Editorial

 

My Dear Friends,

 

Please accept all of our sincere thanks for the many years of your support.

 

Gold will shortly trade at $1650 and then on to Alf’s and Armstrong’s numbers.

 

The only thank you we want is in the form of your protection.

 

Our purpose here is your family’s financial safety.

 

Our total reward is knowing you are all ok.

 

Thank you all for having trusted us. It is the greatest of possible compliments.

 

Happy Thanksgiving!

 

Respectfully yours,

Jim and the JSMineset Team

 

 

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I'm not sure if this has been posted here, but I have just seen it on HPC: http://www.realclearmarkets.com/video/2009.../8000_gold.html

 

$8,000 an ounce anyone? :)

 

I like the 1-1 reference. Reminds me of a song by New (World) Order. :lol:

 

Protect yourself

Its one to one

Protect yourself

Its one to one

Protect yourself

You can't be wrong

When somethings good

Its never gone

 

Gold's got the world in motion

And I know what we can do

Gold's got the world in motion

And I can't believe its true

 

Edit wrt Cgnao

 

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