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 Replies: 5 / Views: 2,122 |
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Pillar of the Community
Canada
2019 Posts |
Ok so I was just looking at some gold related stuff and found this, They are talking about things that these guys think was a "Turkey" and while its interesting there are a few points on interest , look at the mine production "400,000 oz a year with a life of 9 ish years if at full production , that 3.8 mill oz of gold or 160 tonnes. Ok and this is just one mine. Also note the production costs of $1300 an oz, well they inc the capital cost of 1.8 billion . But is it just me or is there no foreseeable shortage of gold and all the doom sayers of running out of gold is just BS, remember this is just one mine in Canada, be it is a big one. Quote:
John Kaiser: The biggest turkey was the updated feasibility study Goldcorp Inc. (G:TSX; GG:NYSE) published in late March for its Eleonore gold mine in Quebec. Eleonore was the greatest Canadian gold exploration discovery made by a resource junior (Virginia Gold Mines) during the past decade. When Goldcorp bought Virginia in March 2006, gold was at about $550 per ounce ($550/oz), less than half where it is today. After the pre-resource estimate in 2006 for $750 million ($750M), the company outlined 3.8M Proven and Probable ounces and another 4M Inferred ounces at a somewhat higher grade, nearly doubling the projected 9 year mine-life. The 7,500 ton per day underground mine will average 400,000 oz annually, but the feasibility study indicates that at a 5% discount rate using $$1,300/oz gold, the after-tax net present value is negative $172M and the internal rate of return is 3.15%, thanks largely to a capital cost of $1.85 billion.
Eleonore is a symbolic turkey for the exploration sector because it has raised the bar for what counts as an exploration success at $1,200/oz gold to an impossibly high level. If a junior discovers a new deposit in a remote location that looks like Eleonore tomorrow, the market would have to dismiss it as economically insignificant. Eleonore has already been built, so it would benefit from higher gold price and the doubling of mine life when the resource is upgraded to a reserve, but it would not be built today. http://www.theaureport.com/pub/na/1...043;11-25-14Quote:
2011 Gold Production
Country Metric Tons
China 355
Australia 270
United States 237
Russia 200
South Africa 190
Peru 150
Canada 110
Indonesia 100
Ghana 100
Uzbekistan 90
Mexico 85
Papua New Guinea 70
Brazil 55
Chile 45
Other Countries 630
The values above are estimated gold production in metric tons. Data from USGS Mineral Commodity Summaries.
http://geology.com/minerals/gold/us...f-gold.shtmlQuote:
What percentage of gold is reused / recycled each year?
Approximately a third of the gold on the market at any one time is recycled. A five year average between 2005 and 2010 saw recycled gold take up 35% of the gold available. http://www.goldfacts.org/en/faqs/#q...ed_each_yearWell ok we consume alot of gold for jewelry but 35% or more now gets recycled. Quote:
How big is the market for gold jewellery?
In 2010 the world consumed 2,017 tonnes of gold jewellery, which was valued at approximately $79 billion. http://www.goldfacts.org/en/faqs/#q...gold_jewelryEdited by Northerncoins
12/04/2014 6:18 pm
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Bedrock of the Community
Australia
21788 Posts |
There has never been a gold shortage, and it is safe to assume that there never will be. Low gold reserves for currency backing have been a problem for some countries in recent times.
Gold provides SOME of the backing to World currencies. If the backing is completely removed from the currency backing job, then gold will be practically worthless. There is simply too much of the stuff.
Supply and demand is not the only factor that determines it's price. Governments for all sorts of reasons, and wars, have always had at least some role in the manipulation of the gold price in a wide range of countries.
That is the reason why some strategically important metals are NOT used for currency backing. Platinum is such a metal, and that is a long way from being the most valuable.
Silver has a wide range of industrial applications, and like most commodoties, the price is governed by supply and demand. It once had some role in currency backing, but not now.
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Bedrock of the Community
Australia
21788 Posts |
The newly mined gold report for 2011 totals at roughly 2,500 tonnes. That is fairly typical and average for a total annual World production. The total annual variation is less than 500 tonnes, either way.
I assume that most gold that comes onto the market has been recycled at some time or other.
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Pillar of the Community
New Zealand
526 Posts |
Above ground supply is increasing - below ground supply is diminishing. The average mined PA is about 2600 tonnes.
205,000 tonnes is approximately the sum of the current above ground stocks (approximately 160,000 tonnes) plus the aggregate un-mined known reserves of all the world's gold mining companies (approximately 45,000 tonnes). That's all the world's gold - both above ground, and known about but still underground.
Owning gold in good phase is very profitable. In the 5 years after the 1929 crash gold's investment purchasing power rose 17 times. In the decade of the 1970s gold's investment purchasing power rose 15 times. AND THIS IS THE REALLY INTERESTING BIT......... So far in gold's current re-emergence, with the economic situation looking every bit as as hostile as the 30s and the 70s, gold's price has multiplied by about 3 times. By comparison with those previous cycles it is still nearer the bottom than the top.https://www.bullionvaultaffiliate.c...old/Why-goldBuy low, sell high. The time may soon be right.
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Pillar of the Community
Canada
3692 Posts |
I'm with Sel on his point about platinum. It doesn't get mined everywhere on Earth, so people will outright reject it as money - too much of a monopoly. Working class people in the late 1800s in the USA wanted silver to be minted as a way to balance out the power structure (Comstock Lode), but of course silver isn't as prevalent globally as gold, especially for international trading.
Gold demand for jewellery, from what I've seen firsthand: gold gets refined more when the price rises and people buy gold as the price is on the rise. It's all public perception - they see the price for an ounce when they're really buying 3-5 grams of alloyed gold. It's mostly the same price if it's $1000 or $1800; it's the designing and labor that counts the most. In my opinion, buy 22 karat if you're getting any jewellery at all, or 18K as you get the most value of gold for the labor. There's no shortage of mathematically-challenged people, is what I say. It's not the price of gold that gets manipulated, per se, it's the person. Then when the price is on a slope people are not interested in buying or selling as much because of a change in perceived value based on numerals. All of the speculators vanish and people feel burned when really they hold the same amount of gold as before. Price doesn't matter at all and there's no shortage.
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Pillar of the Community
New Zealand
526 Posts |
Gold is on its way down a little further IMO
However, there could be a block of orders/people buying around the $1000 mark (including me).
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Posted 12/04/2014 6:25 pm
