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Commodities (Precious Metals, Agriculture)

Staggering Stats About Silver Supply

By: Richard DoughtySLV, the silver Exchange-Traded Fund, could be viewed as the main alternate source of storage for silver, and it accounts for around 50% of world silver inventory. It seems that SLV has been raided heavily over the past seven weeks, Read more

Rob McEwen: Looking Ahead of the Curve

By: Karen RocheRob McEwen, a veteran of the resource industry, is CEO of US Gold Corporation and chairman of its board. He recently sat down with Roche for this exclusive, wide-ranging interview. While hoping to avoid the “darkest hour”, Read more

Gold May Decline 50% Before the World Cup is Over

(And the World Cup May be Won by a Herd of Wild Burundi Elephants)By: Eric JanszenA recent Morgan Stanley analysis predicts that gold will plunge 70%. Read more

Gold Reclaims its Currency Status as the Global System Unravels

By: Ambrose Evans-PritchardThe ECB has revealed that its systemic risk indicator surged to an all-time high on May 7, during the Eurozone money-market meltdown. “The probability of a simultaneous default of two or more euro-area large and complex banking groups rose sharply,” it said. Read more

Don Coxe Dissects Gold

By: Tyler DurdenWhat do you do if you can no longer believe in real estate, bank deposits, the dollar, the yen or the euro? What can you believe in? Gold. So old it’s new again, the yellow metal can’t be synthesized and acts as a store of value for future generations. Read more

So Little Gold

By: Arnold BockThere isn’t much gold around, and this is a key issue for those who invest in precious metals. Bock contends that, given the scarcity of gold and silver bullion supply, prices will go parabolic once governments, institutional and private investors realize supply is alarmingly insignificant. Read more

Will Economic Austerity Kill Gold’s Bull Market?

By: Dominic FrisbyOn 21 June gold broke out to new all-time highs above $1,260 per ounce, but then made a dramatic correction to around $1,190. That's quite a correction and it concerned a lot of people, so Frisby addresses whether this is anything more than a healthy pull-back. Read more

Irrational Gold Selling

The Mogambo GuruThe shrewd, funny and irreverent Mogambo was surprised by gold’s recent dramatic correction, since it indicated gold sales even in the face of the Fed’s dollar destruction through excessive money printing. “Apparently, Read more

Gold is Back as Money

By: Julian PhillipsIn its 2010 annual report, the Bank for International Settlements (BIS) said that “gold, which the bank held in connection with gold swap operations, under which the bank exchanges currencies for physical gold, stands at 8,160.1 million in special drawing rights, Read more

So You Think You Own Gold?

By: Erik TownsendThe principal contention of this article is that most investors who think they own gold or silver bullion really don’t. Most precious metals investments – including many touted as physical – are nothing more than paper promises. Read more

So Little Gold

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By: Arnold Bock
There isn’t much gold around, and this is a key issue for those who invest in precious metals. Bock contends that, given the scarcity of gold and silver bullion supply, prices will go parabolic once governments, institutional and private investors realize supply is alarmingly insignificant.
The top 8 gold-owning countries are the US, followed by Germany, Italy, France, China, Switzerland, Japan and the Netherlands. None of these countries back their currency with gold, so presumably they own the yellow metal because they believe gold is the only real money, not the coloured paper and numeric symbols on computer screens that are the ultimate in make-believe fiat currency.
The IMF owns close to 3,000 tonnes of gold, while the most significant non-governmental holders of gold are the bullion ETFs. They are said to own more than 1,856 tonnes of gold, but their rapid growth raises serious concerns over exactly how much of their holdings are backed by metal in a vault and how much is just another version of ‘paper gold’. In addition, ETFs lack operational transparency. In all, the total value of gold that exists in the world is roughly $5 trillion at today’s price and, in terms of physical size, represents a cube measuring 66.5 feet.
That’s not that much from either perspective. Meanwhile, annual gold production totals $73 billion (silver is only $10.3 billion) at today’s price. Compare that to the projected US budgetary deficit for fiscal year 2010 of $1.6 trillion, the official accumulated debt of $13 trillion and unfunded contingent future liabilities and obligations of well over $100 trillion. This illustrates just how infinitesimal annual gold production is. In addition, in spite of a 400% rise in the price of gold over the past ten years, annual production has stalled. This has some analysts concluding that ‘peak gold’ is now a reality, much like peak oil. Bock discusses phantom gold, paper gold, token gold and parabolic gold.