"How to corner the gold market"

MrOrganic

http://www.huffingtonpost.com/janet-tavakoli/how-to-corner-the-gold-ma_b_518800.html
"How to corner the gold market"
Great article!!

Hmmm is this what paulson & soros are doing?

derryb

corrected address with the linky thingy

MrOrganic

Thanx DB

sinin1

I don't think it can be done for very long



if at all



no way to buy all gold mines
no way to conrol all of cash-for-golds (and all other recyclers) collection and refinery activity


and even if they could - new ones would pop-up and start pumping out more gold


there is simply not enough money to take delivery of all gold produced along with all gold recycled



short term manipulation and swings is being done all the time - but longer term - never

CaptHenway

<< <i>I don't think it can be done for very long



if at all



no way to buy all gold mines
no way to conrol all of cash-for-golds (and all other recyclers) collection and refinery activity


and even if they could - new ones would pop-up and start pumping out more gold


there is simply not enough money to take delivery of all gold produced along with all gold recycled



short term manipulation and swings is being done all the time - but longer term - never >>



The CHinese government could do it. They have the money. It used to be ours.
TD

roadrunner

and even if they could - new ones would pop-up and start pumping out more gold

Not likely. It will take 5-10 yrs from today to ramp up annual gold production significantly....say by 10-30%. But this still pales in comparison to world gold inventory. In the later 1970's gold production was also starting to be ramped up by planning more projects and commencing them. Yet, gold production declined until about 1985-1986 when those new mines finally came into production....5 Years after gold peaked. The easy gold has been found. Now it takes excursions into the mountains of unsafe political jurisdictions, mines of up to 5,000 ft deep, and with the constant threat of strikes, increasing oil/engery prices, permits being pulled, mines nationalized, etc. Considering the world is pushing towards "green," miners are a prime target for stricture environmental controls, increased taxation, or just plain closure. Whatever the gold market does in the next 3-5 years, it will have to do with the gold already in hand. New production is next to meaningless and in fact has been dropping since around 2001 (all while the gold price has quadrupled). In other words, the miners are still getting hammered from all different angles of risk. It ain't no picnic and far from a sure thing.

And even if production ramped up say 30% at some point, that's about 750 tons more per year. Considering the total gold supply is around 155,000 tons, that's an additional 0.5% increase per year over the above ground supplies. It won't ever make a dent in this decade. It would not be that diffult to buy into all the gold mines in the world if one was secretive enough. The sum of the world's significant senior and intermediate gold mining companies equates to about the same market value of a Walmart or McDonalds....just one major world corporation. If someone really wanted to, they could have amassed a significant share % over the past 4 years.

For all we know the Chinese govt could have been stockpiling the up to 15,000 tons of gold that the Central Banks have been selling for the past 15 years. It would have been slow and methodical but very effective. Frankly, I'm surprised they ever told the world they had increased their gold holdings by 600 tons a year ago. It's such a small amount one has to wonder if they haven't increased their gold holdings by multiples of that.

roadrunner