Gold mined in Russia is not allowed to leave the country? Where did you get your information from? Central Banks are not sellers of gold? Are kidding?????? I think you need to check your facts. Getting back to my point made earlier about gold salvaged from shipwrecks, the SS Egypt carried 5 tonnes of ingots and at least an equal amount in weight of gold soveriegns as well as 10 tonnes of silver. That is a lot of gold! There are literally tens of thousands of tonnes of gold being salvaged as we speak. Google Search is a good educational tool. Use it! I am not a gold bear, I have numerous interests in gold as well as one large short NEM:NYSE. I win whatever happens! I just happen to see a bubble in gold....it is rather obvious that it is a bubble. If it isn't...I still make money, the gold companies I invest in have 1/ low production costs so if gold falls I still make money 2/ Good management, they are well run. I do not, however, think gold has an appreciable upside going forward.
There are hundreds of salvage operations in progress as we speak. They like to keep it quiet for obvious reasons, they don't make CNN or Fox news. As for Americans being taken for a ride, why does the word "Bush" spring to mind? Bush has created the 'Mother of all deficits' Gold will not cure this problem
We in Australia have located the wrecks of 3 English ships that sunk during a storm carrying a military payload in the early 1800's in comparatively shallow water of the coast in the Pacific here (No, I'm not going to tell you where it is!) With 15 tonnes of gold soveriegns. With modern equipment this gold is soon to be salvaged. That is a ****LOAD of gold 15 TONNES! How many tonnes has the English Central Bank have?
You're going to need lots and lots of this! <a href="http://imageshack.us"><img src="http://img135.imageshack.us/img135/738/vaselinejq1.jpg" border="0" alt="Image Hosted by ImageShack.us" /></a>
ROFL very funny actually.. I'm already well in the money but if someone is shorting it NOW they may need it! Then again they may not.... Back in the eighties I saw gold come off real steep, dropped like stone.
You need to be talking thousands of tons for it to have any effect. Ten tons is nothing. Ten tons of gold won't cover the U.S. trade deficit for a week. Gold soveriegns would be great to find, to be sure, but really aren't going to make any kind of dent in the big problem. I suggest you get more current with your data if you have real money in the market.
A while ago I heard Mark Faber saying gold is a limited resource. This is just plain nonsense. How does he know how much gold there is in the ground, currently being recovered etc. A while ago in thin trade a central bank sold less that ten tons of gold and the price dropped $20 it then recovered slowly. Sometimes little orders can really hurt the price of gold.
I have actually more long postions in gold than shorts but some of the crapola that often is the product of media departments employed by one-way funds with tremendously long positions in physical gold or futures, options etc is just laughable. Fancy someone of Mark Faber's (alledged?) reputation saying gold is a 'limited resource'. I know he has been right in the past but so has my coin toss, dartboard etc. His German accent doesn't make me think:- "Ooooh! He must know he is talking about" I personally hope gold rallies in the short term but if not I am NOT going to sell my gold stocks. The stocks I own will be profitable even if gold falls. Why? Low production costs.
The ones with low production costs have already been bid up and fully valued for $600 gold. The opportunities are the ones that haven't done much to date, are heavily shorted, and are turning around, IMO. Of course, if gold goes to over $730, all bets are off and its Katy bar the door again for the whole lot of them.
The central banks all sell gold into the market.Central banks have an agreement to limit their anual gold sales to 500 tonnes but exceeded that last year.Central banks have been selling their gold for the last two decades.Basically central banks have been selling over all these years to manage the price of gold to maintain the false impression that the fiat currencies of the world have some kind of substantial value,especially the dollar.Last years global demand was 3950 tonnes but production globally was 2550 tonnes.This one fact alone should tell you that gold should be in a long term trend.Canada and the Swiss have already sold all their gold and judging by this years price swings,it would appear that the central banks are loosing their ability to manage price of gold.Another practice the central banks used to engage in was to sell borrowed gold.In other words selling gold that did not exist.Hope I've been helpful.My picks :BGO,EGO,GSS, and CDE for existing junior producer growth(1-2 years),and for potential takeover or buyout:NG,NAK,NTO,AZS,GRZ and KRY.Obviously,NG is in play already.These companies are in volved with ore bodies that exceed 10 mil. ouces