Asian Gold Premiums Soar by Patrick Heller
OPA
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makes for interesting reading. Good article in Numismaster.
Numismaster
"If there was ever a week that the U.S. government needed to hold down the price of gold, last week was it.
The price of gold represents a report card on the U.S. economy, the U.S. government, and the U.S. dollar. If the price of gold increases, that is a sign of declining confidence in the value of the U.S. dollar and the safety of holding US Treasury debt. So, when politicians in Washington need to look competent at what they are doing, it is essential that the price of gold be held down."
Numismaster
"If there was ever a week that the U.S. government needed to hold down the price of gold, last week was it.
The price of gold represents a report card on the U.S. economy, the U.S. government, and the U.S. dollar. If the price of gold increases, that is a sign of declining confidence in the value of the U.S. dollar and the safety of holding US Treasury debt. So, when politicians in Washington need to look competent at what they are doing, it is essential that the price of gold be held down."
"Bongo drive 1984 Lincoln that looks like old coin dug from ground."
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Comments
We've been saying that for a while here but it has yet to happen. Do you think there will just be a run on the premium for physical when that happens or will the supply just instantly dry up and everybody go into hoard mode?
<< <i>Very interesting article. Looks like the supply of actual physical gold is getting tighter and tighter. There will be some ugly surprises for some individuals holding the paper accounts. >>
Paper accounts? Are you including stocks of miners?
<< <i>Very interesting article. Looks like the supply of actual physical gold is getting tighter and tighter. There will be some ugly surprises for some individuals holding the paper accounts. >>
At these levels the miners are going to increase production. Most are unhedged now so they have a lot of incentive to "print" more yellow metal. And print they will. Mining costs are about $450/oz, selling it for $1100.
Knowledge is the enemy of fear
<< <i>At these levels the miners are going to increase production. Most are unhedged now so they have a lot of incentive to "print" more yellow metal. And print they will. Mining costs are about $450/oz, selling it for $1100. >>
On paper that may be true .... but in reality? Has there been a substantial increase in gold production over the last 2 years? And are the true mining costs $450 per oz for the big boys? On average for the big boys, how many tons of rock are processed to obtain 1 oz of ore?
I just don't know.
Maybe .... refinerychic ..... can shed some light on the subject. She works for a refinery.