Good, having a laugh's half the fun, but goldbugs won't find it very funny that the SPDR Gold Trust sold another 4 tonnes yesterday, that's 7 tonnes in 2 days.
Gotta be a clue there.
Printable View
Aussie gold stocks are lifting today (some up over 5%) due mainly to RBA Governor Stevens' talking down the AUD last night. Over the past 24hrs, the AUD has dropped almost 2% against the GBP, EUR and to a lesser extent the USD. It has taken the NZD with it.
This means higher export gold prices (in AUD) for Aussie diggers.
What hasn't gone parabolic since 1910 Moosie?
Overlap a chart of global population with gold production, sort of puts it in perspective.[
In the last 10 years gold production has remained around 2700 - 2800 tons.
QUOTE=moosie_900;443855]ummm, I just read chart about global gold production. from 1910 onwards (to this day!) production has been on an exponential curve upwards. demand dipped quite a bit last year as well...[/QUOTE]
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Talking World population to Gold.. with China now canceling the one birth law ...the low sub 1oz per person could well move towards half a oz esp if Gold production starts to fall on the back of the paper price moving under replacement / mining costs ....I never buy the mass excess of gold going to flood the markets any day
In 2010, most central banks became net buyers of Gold bullion, but last month, Germany (the 2nd largest holder after the USA) cut its gold bullion stocks for the 2nd time this year -- 3.4 tonnes (against an estimated holding of 3,400 tonnes -- i.e. only 0.1%). Whether or not the Germans are doing so again this month remains to be seen.
Some countries' central banks are increasing their stocks (Turkey - 13 tonnes , China - ?? tonnes, Greece, Luxembourg, Costa Rica, etc). The USA (holding 8,100 tonnes) increased its holdings last month by just a small amount.
http://www.mineweb.com/mineweb/conte...9134&sn=Detail
I've been reminded that last April's nose dive in the price of Gold was brought about by Cyprus going bankrupt and wanting to sell off its gold quickly. I'm not aware of any other nation currently in dire straits and wanting to do the same, and so that kind of rout is not about to be repeated this year.
Roll on 1200USD so that we can get a decent bounce and established support this PM has been looking for. Equity markets (especially in the USA) are struggling to climb further. An exception is China now that it's announced some reforms and unleashed the shackles from its sharemarket. Japan's also may yet have some steam left in its bowels but many Westerners may avoid these two in preference to precious metals when their own stock markets begin cooling. It's just a question of 'if'; not 'when', and when that happens it will be into gold juniors with good leverage that I'll be investing to get great returns off short-term spikes.
BC
BC, as posted previously the Swiss are under pressure from its citizens to buy back over 1,000 tons they have sold.
A couple of articles of note lately. I meant to post the first one a couple of days ago as its possibly a game changer for the USD if carried out.
“It’s no longer in China’s favor to accumulate foreign-exchange reserves,” Yi Gang, a deputy governor at the central bank, said in a speech organized by China Economists 50 Forum at Tsinghua University yesterday. The monetary authority will “basically” end normal intervention in the currency market and broaden the yuan’s daily trading range, Governor Zhou Xiaochuan wrote in an article in a guidebook explaining reforms outlined last week following a Communist Party meeting. Neither Yi nor Zhou gave a timeframe for any changes."
http://www.businessweek.com/news/201...ecord-reserves
My view & it has been for a year or two is that the Yuan will be floated within 5-10 years.
Another interesting article from last night re Comex.
The most heavily traded gold option contract by more than double was a $3000 strike. I wouldn't mind a few views on this, but could it be the delta execution on these options that is pinning gold down? I'm not sure what the delta on these might be, but I would have thought around 10% or possibly higher. That's 725k of selling to hedge the delta.
http://www.bloomberg.com/news/2013-1...yesterday.html
JB,
SPDR Gold Trust down another 4 tonnes yesterday, they're 'backin' the truck up', all right, investors must think gold's toxic.
Gold mine output set to reach record, disappointing bulls
This record production is disappointing gold bulls who are impatiently waiting for production cuts following this year's 24% plunge in prices.
Author: Jan Harvey & Clara Ferreira-Marques (Reuters)
Posted: Wednesday , 20 Nov 2013
LONDON (Reuters) -
Output from the world's gold mines is set to hit record highs this year, disappointing bulls who are impatiently waiting for production cuts following this year's 24 percent plunge in prices.
Some gold miners have felt the squeeze of lower prices this year, and a number, including Canada's Kinross and Russia's Polymetal, suspended marginal mines and projects after a dramatic first-half price drop.
But as prices fall, others are actually increasing output to maintain revenue and profit levels. In some cases, they are targeting higher grade ore to keep marginal mines operating and generating cash, at the expense of future production.
Furthermore, several large projects put into motion during gold's 12-year rally, which took it as high as $1,920 an ounce in 2011, are coming to fruition.
"Our expectation is that we're going to see a fresh record high in gold mining output this year," GFMS analyst William Tankard said.
Interesting article Skol. In the interests of keeping this discussion balanced perhaps it's good to include the pertinent parts of the article that don't necessarily reinforce your beliefs...
All-in costs are expected to ease back to around $1 200/oz in 2013.... and there is only so far miners can cut back to keep tough operations afloat
Gold production could start moderating in 2015.
"That's the point when you will start to see some cost-cutting closures," Metals Focus analyst Oliver Heathman said. "Depending on the mines, they can sustain a period of high grading. The bulk of mines are still profitable on a cash cost basis at $1 000/oz, but not on a prolonged basis."
The fact that the spot price is now near enough the same as the average all-in cost price is very relevant IMHO. I'm only a very casual observer of the gold industry but it seems to me that gold companies are bleeding right across the spectrum. Pundits are predicting that about half the juniors will go out of business. If the price of gold goes much lower and stays there, then it seems logical to me that the industry (and supply capabilities) will be much smaller in a few years than what we have today.