I love the word Eschatology and it is getting a lot of use recently. The study of End Times. But what is fascinating to me is its other, more subtler meaning: the end of the absolutely expected and familiar and the beginning of the starkly unknown. The Alpha and the Omega right in your face. Which is all a round about way of saying, wow, here we are, this generation, experiencing the terminal decline of gold, an omnipresent civilization industry for 6 thousand years or more.
According to the world’s top gold producer Barrick, annual production has fallen by approximately 1m ounces per year since 2000, even though exploration budgets have tripled. Further evidence is found in the drop in ore grade concentrations from 12 grams per tonne in 1950 to 3 grams (US). South Africa’s total production has dropped by 50% since the 1970s. And as ore quality drops and production falls we are looking at the dramatic extension of the greatest gold bull market in history.
“There is a strong case to be made that we are already at ‘peak gold’,” said Aaron Regent, president of the Barrick, the Canadian gold giant. “Production peaked around 2000 and it has been in decline ever since, and we forecast that decline to continue. It is increasingly difficult to find ore,” he said.
Meanwhile China and India continue their buying sprees. India recently bought 200 tonnes from the International Monetary Fund increasing their reserves by 2%, diversifying its reserves holdings which focuses on the US dollar. China continues its long march towards possible reserve currency status by doubling it gold holdings to 1058 tonnes, all the while implementing a startling new policy of personal gold and silver ownership for its citizens. The Chinese long view is eying a future monetized population, a possible gold back yuan, and the last spindly legs kicked out from under Old Man Dollar. It is the latest sign that the rising powers of Asia and the commodity bloc are growing wary of Western paper money and debt.
As in all end days uncertainty remains certain and we can count on confidence and capital seeking security in the increasing scarcity of gold. How high can it go?
How high do you got?
Mad days indeed.
Aaron Kutchinsky is a lecturer/seminar leader and expert precious metals broker on the subject of proactive and timely personal and community economic protection and preservation.
Salvation Investing is the concept, and understanding, of absolute and urgent protection of your equity investments, worldly assets, and personal safety: Gold, silver and other precious metals are real money, wealth, and treasure to safeguard and firewall you, your family, and your community against the probable and catastrophic collapse of US/Global currencies and financial structures.
http://www.salvationgoldandsilver.wordpress.com
email me
No comments:
Post a Comment