We're drowning in gold!
tggr
Posts: 748 ✭
I found this on another site.
It makes you wonder.
Most people reading this forum are not aware that there is no shortage of gold, in fact there is so much still underground and about to be mined that it may seriously affect the value of our holdings. I'll give you a small sample taken from the news headlines in just the last week:
Yamana Gold will produce more than 200,000 ounces of gold per year from Gualcamayo mine for at least a 10-year period.
Romania's Rosia Montana mine, where Gabriel Resources, the Canadian mining company, is about to dig for a huge gold deposit estimated at 14.6 million ounces, worth almost $10 billion.
Olympic Dam, the huge Australian deposit that contains 40% of the world's known supplies of uranium plus a decent helping of gold and other metals. Olympic Dam, thinks BHP, could be producing for the next 100 years.
The newly assessed Mt. Milligan copper-gold deposit northwest of Prince George contains at least 5.5 million oz of gold.
Kirkland Goldfields gold mine in the enormous Kirana Break deposit, claim a current indicated resource of approximately 50,000 tonnes of contained gold.
The new Pebble Mine (26.5 million ounces of gold to be mined)
The massive Oyu Tolgoi copper-and-gold deposit. Oyu Tolgoi is considered to be the largest untapped copper and gold mine in the world. 2005 estimates put the annual yields from the mine at 450,000 tons of copper and 330,000 ounces of gold to be extracted beginning in 2010.
New mines at -- Little Squaw, Hannukainen, Kirazli, Loulo, Galore Creek mine, and many more!
Oh dear!
Seriously, people, now may be the time to sell.
__________________
It makes you wonder.
Most people reading this forum are not aware that there is no shortage of gold, in fact there is so much still underground and about to be mined that it may seriously affect the value of our holdings. I'll give you a small sample taken from the news headlines in just the last week:
Yamana Gold will produce more than 200,000 ounces of gold per year from Gualcamayo mine for at least a 10-year period.
Romania's Rosia Montana mine, where Gabriel Resources, the Canadian mining company, is about to dig for a huge gold deposit estimated at 14.6 million ounces, worth almost $10 billion.
Olympic Dam, the huge Australian deposit that contains 40% of the world's known supplies of uranium plus a decent helping of gold and other metals. Olympic Dam, thinks BHP, could be producing for the next 100 years.
The newly assessed Mt. Milligan copper-gold deposit northwest of Prince George contains at least 5.5 million oz of gold.
Kirkland Goldfields gold mine in the enormous Kirana Break deposit, claim a current indicated resource of approximately 50,000 tonnes of contained gold.
The new Pebble Mine (26.5 million ounces of gold to be mined)
The massive Oyu Tolgoi copper-and-gold deposit. Oyu Tolgoi is considered to be the largest untapped copper and gold mine in the world. 2005 estimates put the annual yields from the mine at 450,000 tons of copper and 330,000 ounces of gold to be extracted beginning in 2010.
New mines at -- Little Squaw, Hannukainen, Kirazli, Loulo, Galore Creek mine, and many more!
Oh dear!
Seriously, people, now may be the time to sell.
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0
Comments
Apropos of the coin posse/aka caca: "The longer he spoke of his honor, the tighter I held to my purse."
Groucho Marx
Seriously though the amount of cash in the world dwarfs the amount of gold and
every indication seems to be the gulf will grow. There is always the matter of the
huge central bank stockpiles but so long as many people see this as money they
won't be a major problem either.
Gold's fundamentals are not significantly changed even if they are far worse than
silver's.
Having said that, I think it would be prudent to sell gold at these levels and buy back in when the market softens. Additionally Platinum and Silver will be better long term metals as they both have heavy industrial demand and there is not nearly as much above ground as there is gold these days.
just completed 3d tour to Iraq and retired after 28+ years in the US Army
I just like collecting gold coins.
<< <i>We're drowning in gold! >>
Count "We who are drowning in GOLD" as well allocated.
FloridaBill
Guardian Unlimited article
>>
BHP Billiton will tomorrow announce that it estimates the reserves of gold at its Australian Olympic Dam mine are more than 50% bigger than previously thought, raising speculation that it is sitting on the largest gold mine in the world
...
>>
Maybe if half the worldwide population died out, gold might turn out to be a relatively available commodity.
another aspect not considered in the mining of Gold is the eventual resource scarcity we will be seeing in the next decade or two as our oil supplies worldwide go into permant decline (peak oil). The mining and smelting of gold is going to get progressively more expensive.
There's a lot of gold yet to be mined.
However, the cost of retrieving new gold is rapidly closing in on $600 US per oz creating a very strong floor under current prices of gold.
Keep in mind that if oil prices stay above $70 a barrel then cost of extracting gold will continue to rise sharply.
Cost of extracting and transporting gold is very high in energy costs.
Our U.S. paper dollars are being devalued more every day, by our buddies in Congress and their private banking friends. They are *not* our friends. They are protecting their own fortunes by pilfering our retirement savings via inflation. It's not even insidious anymore. It's blatant.
Exhibit I: Weimar Germany 100,000,000 Mark Note. They were printing money so fast that they stopped wasting ink on the backsides. This one was printed in 1923.
I rest my case.
I knew it would happen.
Gold is an awesome conductor of electricity and it doesn't corrode. They are using more than ever in Industry.
Did you see that show where a company is crushing old computers by the thousands just to get the minuscule amount of gold that’s in them? If they are doing that to get the gold, I think demand is still pretty high.
Well sure it is. Now we know that supply is pretty danged high too. Gold bugs better hope the suppliers restrain themselves and keep the price high so the gold bugs can sleep at night. Probably not soundly, though, knowing their little house of cards depends on forces out of their control. Or predictive abilities. Or wishful thinking.
Apropos of the coin posse/aka caca: "The longer he spoke of his honor, the tighter I held to my purse."
Stock bugs must sleep soundly at night knowing the companies they are invested in are so honestly and well managed. No company ever lied about earnings, or dumped their personal shares while talking up the stock(see Angelo Mozillo of Countrywide). Stock bugs have complete control of their fantasy paper investments.
That is why you read the annual reports of the mining companies to see which one will benefit the most when the price of gold goes up.
So your title is correct if one goes swimming in the ocean and drowns.
San Diego, CA
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3 years, 10 years, 20 years. What if oil drops to $45 a barrel, more people are concerned with the environment, and are driving more fuel
efficient cars. Who knows in 20 years, cars could be powered by hydrogen fuel cells. Imagine 10's of millions of vehicles not consuming a
drop of oil or fuel.
I feel the internal combustion engine will be a thing of the past. Oil has brought us this far, time for a change. No environment no human
race. Not even the most informed economists really know they speculate with data.
Less oil consumed, less to mine it?
Next thing you know Barrick will be taking Yamana over (lol). Considering it takes 5-10 yrs (closer to 10) to bring new mines or even
old mines back into production, don't count on gold prices crashing on this news. You can compare this to the supposed zillions of
barrells of oil sitting under the Gulf of Mexico 5 miles deep (ie we'll believe it when we see it, and it's feasible to extract it).
The G15 nations are pumping out paper money at 10-50% per year, and you think 2-3% gold increase per year is a loser?
roadrunner
Liberty: Parent of Science & Industry
<< <i>Wait till the plan comes to fruition: Sending a rocket out to the asteroid belt to tow back a big dense chunk of rich ore. You'll think, "drowning in gold" >>
That idea may not work out so well as asteroids are composed of three materials: mostly (92.8 percent) silicates (stone); metals (5.7 percent) iron and nickel; and the rest as a mix of the those materials and carbon-rich substances. Asteroids located closer to Mars and Earth that exhibit the same spectra are composed of rocky minerals ("stone") mixed with iron.
Heavier elements are found nearer to the sun. Now maybe there may be a batch on Mars, but so far there is no evidence of that either. At least not through spectrum analysis.
I think, at least for our lifetimes, we'll have to settle for what's here on the home planet.
John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
<< <i>The quickly increasing demand from India and China will absorb any extra production. >>
It already has and don't leave Russia out of that equation.
John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff
I'm waiting for that "report" to surface again.
until then, I believe the following...
there is plenty of gold in the universe, but supply does not keep up with demand, and the price will rise as long as the dollar falls.
cheers, Alan Mendelson
BestDealsTVshow.com
www.AlanBestBuys.com
www.VegasBestBuys.com
How would fiat money stack up to gold?
Gold in antiquity was relatively easy to obtain geologically; however, 75% of all gold ever produced has been extracted since 1910.[6] It has been estimated that all the gold in the world that has ever been refined would form a single cube 20 m (66 ft) on a side (equivalent to 8000 m³).[6]
Gold facts
That's not a whole lot it's just heavy and has been used to base money since ancient times. And contray to what you've been told is used as a basis for monetary standards even today.
Gold forms the basis for a monetary standard used by the International Monetary Fund (IMF) and the Bank for International Settlements (BIS). The ISO currency code of gold bullion is XAU. Modern industrial uses include dentistry and electronics, where gold has traditionally found use because of its good resistance to oxidative corrosion.
Just like oil the easy stuff is gone and now you have to spend real money to find it, process it, ship it, and store it.
Personally, I think holding some gold right now is a good thing. However, I like platinum better. Just MHO.
<< <i> What if oil drops to $45 a barrel, more people are concerned with the environment, and are driving more fuel
efficient cars. Who knows in 20 years, cars could be powered by hydrogen fuel cells. Imagine 10's of millions of vehicles not consuming a
drop of oil or fuel.
I feel the internal combustion engine will be a thing of the past. Oil has brought us this far, time for a change. No environment no human
race. Not even the most informed economists really know they speculate with data.
Less oil consumed, less to mine it? >>
HAHAHAHAHAHAHAHA!!!!!!
Peopler driving more fuel efficient cars? Yeah right. Everywhere I look people drive full size V8 pickups and XL sized SUVs. This is in Michigan and our economy is in the toilet. We also have the highest gas prices in the nation here. The last thing people will give up is their big gas guzzler.
Fuel cells? Are you serious? Good luck with that too. The environmentalists who keep chanting for electric cars and alternative fuel vehicles haven't even passed 8th grade math. Any engineer will tell you there isn't anything that even comes close to the internal combustion engine in terms of convenience. If you think people are going to drive tiny crapboxes with no A/C, crash protection or performance that cost more than conventional vehicles you are crazy or seriously misinformed.
<< <i>Drown me some more, baby! >>
<< <i>Wait till the plan comes to fruition: Sending a rocket out to the asteroid belt to tow back a big dense chunk of rich ore. You'll think, "drowning in gold" >>
Step away from the star trek DVD's. This is totally beyond our current technology and when it is technically feasible it will be so incredibly expensive to do this the gold recovered will have cost $1 million per ounce.
Cost concerns
San Diego, CA
<< <i>I still pretty good margins.
Not really most mining companies have already sold a lot of gold to be mined in the future to raise capitol to mine it.
reason to use it. You can claim it was demonetized on 1971 but reality today shows a different story.
roadrunner