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Sun, 09/02/2012 - 16:54 | 2756633 ruffian
ruffian's picture

A disruption of some gold supply from mines will NOT have any material impact on price as the STOCK of above ground supply of gold is 70+ years worth. "Commodities" get consumed and have ever shrinking above ground supply in the abscense of new production. Virtually all the gold ever mined still exists so this does not apply to gold.

Sun, 09/02/2012 - 16:58 | 2756637 Black Forest
Black Forest's picture

I respectfully disagree.

Sun, 09/02/2012 - 17:15 | 2756662 knukles
knukles's picture

Here’s the deal as the Knukie sees it.
With the thrashing of the RP folks by the R’s, a lot of middle of the road, independent, ex-R, ex-D (a large and growing %age of the population) are going to either not vote or write in RP where heretofore they might have been leaning R.
An anyone but the O campaign.
But, the R’s needed that sector of the public to beat the O.
They lost it, kicked it out, meaning that the O might just be reelected.
Thusly, the Brenak stays around, constantly pressured by the neo-Keynesians to print like hell.
Which he's very good at, if you've missed it.
We’re entering the seasonally strong buying season for Gold.
The world is falling apart… China/Asiaw weakening, US is softening badly and Europe is dying on the vine with no help anywhere to be imagined.
Everything is worse than 2008.
All it needs is a spark.
Sovereign debt, financial intermediary crisis, run on to safer of all horseshit fiats, flight to quality any port in the storm will do, return of money not return on becomes most important.


Gold rallies.
Shutdowns will just be another albeit added plus… especially of psychological influence.


Just think, if the price gets too high the Administration can release oil form the SPR at the same time releasing Salted Tungsten 440’s from Ft. Knox.
Don’t panic, carry on.

Sun, 09/02/2012 - 17:19 | 2756668 Ahmeexnal
Ahmeexnal's picture

Take a good look at that list of countries.
That's the new upcoming G15.
The rest are the new third world.

Sun, 09/02/2012 - 18:14 | 2756726 Michael
Michael's picture

You're not going to like this, but it's about steeling your and my money.

To some it is an old story, hardly newsworthy. To others it is evidence of a world conspiracy suggesting "the Mark of the Beast." For me, it's something quite humorous. It's called "The Kosher Tax."

Food that meets these strict requirements must be supervised in its production by a Rabbi and only then will it be certified as "Kosher". These foods are marked in a special way by affixing a Kosher symbol on the product's label. The most common one in America is the letter "U" inside a circle, or the letter "K" -- but there are many more.


So what? You don't buy Kosher food -- or do you?

Take a minute right now to check out your kitchen pantry or that bag of chips you're munching. If you're like me, you will be shocked to see that just about everything has one of these Kosher symbols on it. (Go ahead, I'll wait for you to return...)

It seems that just about everyone in the USA -- all 307,006,550 of us -- are regularly buying Kosher food and paying this tax. That's quite surprising, don't you think?

Manufacturers claim that the increase in food prices due to this tax is "minuscule", yet reports claim that the tax is levied on more than 400,000 products in 8,000 plants in 80 different countries. The Union (U) employs approximately 1,000 supervisors, mashgichim in Hebrew, and about 50 rabbinic coordinators. But they are not the only ones doing this. The next largest is Rabbi Bernard Levy's "Committee For The Furtherance of Torah Observance" which uses the "K" symbol. Canadian Kosher products are stamped with the letters "COR" which stands for "Council of Orthodox Rabbis". If you're in another country, chances are they have a special organization collecting the tax and affix a special symbol on your food. Here's a partial collection below.

According to New York Orthodox Rabbi Schulem Rubin:


Menachem Lubinsky, editor of Kosher Today, a New York-based newsletter, said the number of certified kosher products had soared from 16,000 in 1977 to 80,000 today, including such well-known food items as Oreo cookies. He said about a third of all supermarket items were certified kosher. In 2003, kosher foods comprised about $170 billion of the $500 billion in U.S. food sales. [source]

Well, this is too weird. So I throw the question out to the public and seek an explanation. Why are 300-million non-Jews in America paying a tax that benefits a small, "minuscule" portion of the population. Perhaps there is a perfectly good answer -- anyone?

Now, now...

The "U" Tax!


© By Geraldo Fuentes for (2012) ? ?

Sun, 09/02/2012 - 18:51 | 2756761 Pladizow
Pladizow's picture

Stock = 170,000oz

Flow = 2,500oz/yr

Therefore, this supply disruption will have negligible effect on price!

Sun, 09/02/2012 - 22:49 | 2756960 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1

Correct!  Must be another student of FOFOA...

Ohh...  Peru is now the No. 6 producer.  Next year maybe No. 5!

EDIT: shows gold at $1689, down about a buck or so.  Nobody seems to be too excited about this...

Sun, 09/02/2012 - 23:41 | 2757044 PaperWillBurn
PaperWillBurn's picture



Date: Sun Oct 05 1997 21:29


Sun, 09/02/2012 - 19:09 | 2756775 Dr. Sandi
Dr. Sandi's picture

Personally, I LIKE kosher food. I believe it increases the chances that at least somewhere in the food manufacturing process, there's a human involved.

If it's too disgusting, the rabbi might just refuse to give that rotted batch of potato chips his blessing. God knows the FDA inspectors can't be bothered.

However, I'm not sure that South African platinum or gold falls under the kosher food program.

Mon, 09/03/2012 - 01:45 | 2757123 ToNYC
ToNYC's picture

What about the Halal (at the gas pump), Kim-Chi (allthings electronic) and the Cannoli tax (not the gun tax)  that is invisible but just as sure as things fall off trucks.

Mon, 09/03/2012 - 01:43 | 2757124 ToNYC
ToNYC's picture

<remove> tax


Sun, 09/02/2012 - 21:46 | 2756913 MillionDollarBogus_
MillionDollarBogus_'s picture

Gold unmined means less will be available to buy.

On the other hand, new Spanish bonds will be available month after month for a long time.

Buy EU sovereign debt while the getting is good... 

Sun, 09/02/2012 - 22:00 | 2756930 PhattyBuoy
PhattyBuoy's picture

Econ 101: As gold supply goes down, price goes up ... so simple even a Krugman (caveman) could understand it ... !

Mon, 09/03/2012 - 03:49 | 2757187 AldousHuxley
AldousHuxley's picture

market is only efficient in the long run.

idiots are running wild these days.

took a long time for nasdaq and real estate bubble to burst....dont' underestimate your fellow investors who are greedy idiots and also governments with power of information.




Sun, 09/02/2012 - 22:01 | 2756931 Ahmeexnal
Ahmeexnal's picture

Why the hell would Spain, a country in the Maghreb, be allowed into the EU in the first place?

Oh, same reason Turkey, a country in the Middle East, is being lured into the sacrifical pit.

Same reason why german officials have been bribing finance ministers in El Salvador, Haiti, Honduras to join the EU.  Much to their surprise, central americans outright laughed in their faces and told Merkel to fuck off.

Sun, 09/02/2012 - 23:39 | 2757041 HeavydutyMexica...
HeavydutyMexicanOfTheNorthernKingdom's picture

fool me once....

Mon, 09/03/2012 - 00:11 | 2757073 knukles
knukles's picture

I thought that was fuck me once, gringo white boys

Mon, 09/03/2012 - 10:14 | 2757591 giovanni_f
giovanni_f's picture

Spain in the Maghreb? Turkey in the Middle East? German officials in El Salvador? You know things nobody else knows. You are indeed an accomplished source of compressed bullshit. Second to none.

Sun, 09/02/2012 - 18:15 | 2756728 Papasmurf
Papasmurf's picture

I agree.  The shenanigans at the RNC convention have assured an Obama victory.

Sun, 09/02/2012 - 19:11 | 2756778 Dr. Sandi
Dr. Sandi's picture

But wait. There's still plenty of time for shenanigans at the DNC. And the Dems tend to get a little loose during their conventions.

It should be a fun week for those who like to watch pro wrestling on weeknights.

Sun, 09/02/2012 - 20:05 | 2756829 slewie the pi-rat
slewie the pi-rat's picture

maybe baby_B will photograph things about town and give us sum photo-moto blow-by-blows!

doc! if you even need a caddy, i can drive the cart and roll and chew mints at the same time! 

speaking of lightweights :> Desmond Tutu Calls on ICC to Try Blair, Bush Over Iraq


the mo Q's 2nd son Saif al-Islam Gaddafi  is being held in zintan, last i heard.  he, like his father before him has an indictment poending at the ICC himself

he would LOVE to go get tried there, right now!  take me to theHague!  PLEASE!  but the libyans won't let him go;  they say:>  we'll take care of the trial, tyvm!

didya follow the "spies" that came to visit and got captured?  ICC Staff (International Criminal Court) in Libya Held For ...

When the delegation went to visit Saif, however ... When we searched the woman we found she had a letter ... Before the delegation entered the meeting with Saif, we ...
Australian lawyer for Gaddafi son held in Libya amid standoff ...
... visit by the Australian lawyer now caught in a dangerous standoff with local militia fighters over espionage ... think the woman will be with ... 1 Man charged with ...
melinda taylor:> saif's "angelic" visitor flip-flops everywhere!
Sun, 09/02/2012 - 23:29 | 2757028 goldfish1
goldfish1's picture


Sun, 09/02/2012 - 19:44 | 2756803 Cortez the Killer
Cortez the Killer's picture

-1 for your stupid name

-2 for your poorly written, non sensical post

-3 to your parents and teachers for a shit job raising your sorry ass

Sun, 09/02/2012 - 20:13 | 2756839 slewie the pi-rat
slewie the pi-rat's picture

k-nuk is ok by slewie;  he may be related to rCrumb

his clients are happier than billGross's,  that for sure

it is the weekend, bro

he may be spending too much time with the wife again...  he'll be ok;  and i'm certain he already hates his parents and teachers...  he is pretty smart, ya know...

Sun, 09/02/2012 - 17:14 | 2756666 HoofHearted
HoofHearted's picture

And I disrepectfully disagree with this know-nothing wanker.

Growing numbers of people in the world, China trying to suck up as much gold as they can, other CBs getting the feel for the same, yet the supply that is presently available should be enough???

Right. Nadler, is that you?

Sun, 09/02/2012 - 17:03 | 2756645 Monedas
Monedas's picture

I disrespectfully disagree !

Sun, 09/02/2012 - 17:06 | 2756653 Mr. Fix
Mr. Fix's picture

I always liked your style.

Sun, 09/02/2012 - 17:32 | 2756669 Monedas
Monedas's picture


Thanks .... although my style is a complete lack of style .... which is a style of it's own .... am I making sense ? Did you see that documentary   ?

Sun, 09/02/2012 - 18:43 | 2756749 IridiumRebel
IridiumRebel's picture

Yo fix! Good to see you here on a real site.



Mon, 09/03/2012 - 00:20 | 2757083 Mr. Fix
Mr. Fix's picture

Great to see you too!

I spend a lot of time at TF Metal Report now.

Beats MW.

Just click the link at the left.

Mon, 09/03/2012 - 08:31 | 2757371 Zero Govt
Zero Govt's picture

How's Turd doing, has he not fallen on his sword and packed up yet?

Since his crap call at $36.00 Silver fell through the floor, then his happy smiley faces charts got heart-attack grimaces on them and now his reverse head and shoulders looks like the Hunchback of Notredamn with shoulder growth higher than the head....

...why hasn't the self-proclaiming "talent for reading charts" shorted his career in honourable fashion? 


Sun, 09/02/2012 - 17:07 | 2756657 AvoidingTaxation
AvoidingTaxation's picture

Stock is important... but:

You have to consider that a lot of people are not aware of this nuance

Headlines are important, real news not so much

The price is set on the margin.... so less supply = Fuck Benny

The shorts have to find new gold... mine supply is an important new supply

Bottom line: the flow is impacted, hopefully this is the straw on the TPTB back (probably not, but hey, if Walker Bush and a Kenyan can become presidents, everything is possible)




Silver bitchez, bullish!, hang the banksters, I had an incident with my boat.


Sun, 09/02/2012 - 17:14 | 2756664 Ghordius
Ghordius's picture

You might have a point with the news, but the stocks are what makes the difference between monetary metals and just valuable metals.

Monetary status requires *price stability*.

Money requires that you calculate *everything else* with it.

Sun, 09/02/2012 - 17:29 | 2756683 Ahmeexnal
Ahmeexnal's picture

And me thought that "zee prize ztaveeleetee" only required some ugly obese sow wearing purple suits and cheap lipstick pretending to be in command of a sinking ship.

Sun, 09/02/2012 - 17:58 | 2756706 Ghordius
Ghordius's picture

You are perfectly right, we european should adopt the system of electing only leaders of impeccable beauty and full hair, full of telegenic charisma and popular appeal. Someone you would drink a beer with. In fact, we shold request some from the UK and the US. Please send us some that would never-ever admit to lying, if possible. Ask Oncle Rupert for confirmation, or this is all for naught.

Sun, 09/02/2012 - 18:04 | 2756714 Roandavid
Roandavid's picture

They should also be well hung, in order that the fucking be more profound.

Sun, 09/02/2012 - 18:12 | 2756723 knukles
knukles's picture

Hear tell Ghadafi's Ukranian he-she nurse is available

Sun, 09/02/2012 - 17:31 | 2756685 AvoidingTaxation
AvoidingTaxation's picture

You're right Ghordius, I was just making some points about Ruffian post.

In reality stock is what is important in the long term... but we have a massive manipulation in gold and silver. So this kind of bad news is just what JPMorgan & TPTB doesn't need... because this is bullish news.

Anyway. South Africa is a declining nation. They have a 50% chance to make big mistakes in the next year or two, like dividing black and whites or nationalising mines, or just continue with the black empowerment act and a socialist agenda (vs a meritocratic one).

If they don't make big mistakes they still will have a depletion problem + global markets competition as everyone else.

I have a lot of gold & silver mines in my portfolio, many from Africa, but none from SA. I especially like Ghana and Burkina Faso.

Sun, 09/02/2012 - 17:20 | 2756670 flaunt
flaunt's picture

I understand what you're getting at, but I don't think stock to flow ratio is what really matters in this situation.  Price is set at the margin, so supply shocks can easily cause temporarily pricing anomalies.  What's significant about gold's very high stock-to-flow ratio is that the amount of new gold being produced each year does not significantly dilute the entire above ground supply which means increasing supply doesn't cause gold to become less valuable, which is part of what makes it a great store of value.  A sudden decrease in supply however means that there has to be a drop in demand of similar magnitude to avoid a price increase, or prices need to increase in order to mobilize more of the above-ground stock into the hands of buyers.


Sun, 09/02/2012 - 17:22 | 2756674 ruffian
ruffian's picture

Ummm, do the math morons, there is 160,000 tonnes of gold above ground and 2500 tonnes in new mine supply each year and this strike accounts for less than 20 tonnes of annual supply.

Those dimwits here that dont get this are the ones that read only headlines and understand fuck all..............

Sun, 09/02/2012 - 17:31 | 2756686 Ahmeexnal
Ahmeexnal's picture

Check your premises.  Those "160,000 tonnes of gold" you speak of....have long been gone.  All that's left of them are IOUs inside a cheap samsonite suitcase over at Ft. Knox and similar vaults.

Sun, 09/02/2012 - 18:14 | 2756725 knukles
knukles's picture

mimeographed IOU's

(betcha some youngns'll have to look that up...)

Sun, 09/02/2012 - 19:19 | 2756785 WmMcK
WmMcK's picture

Photostatted even.

Sun, 09/02/2012 - 19:15 | 2756781 Dr. Sandi
Dr. Sandi's picture

Somehow, the mention of a Samsonite suitcase in Ft. Knox brings up an image of a rather large gorilla in a nice suit and lovely tie.

He has managed to open the suitcase, only to discover that it IS full of tungsten.

Hilarity ensues.

Sun, 09/02/2012 - 17:33 | 2756689 Tinky
Tinky's picture

I'm guessing that some of us dimwits believe that only a small fraction of the gold "above ground" is actually for sale, and that news of this nature is likely to have a psychological impact, not a meaningful impact on supply.

Sun, 09/02/2012 - 19:17 | 2756783 Dr. Sandi
Dr. Sandi's picture

Between the kilotonnes of gold stashed inside ancient European dungeons and the massive amount lost in boating accidents by people right here on ZH, it's amazing that there's anything at all left to buy from the coin and bullion dealers.

Sun, 09/02/2012 - 17:41 | 2756695 flaunt
flaunt's picture

I tried to be nice, but now I must disrepectfully insist you have no idea what the fuck you're talking about.

The large above-ground stock is reason to reject the oft-cited notion that gold can't go below cost to produce an ounce, because mobilization of the above ground supply could easily and instantly increase the available supply by orders of magnitude over what's produced by the miners.  Price isn't set by gold sitting still, which is what the vast majority of it is doing.  The price is set by gold that is moving, which constitutes mined supply and a small fraction of above ground holdings.  If the demand stays constant and the supply drops, prices have to go up to a level that mobilizes enough above-ground stock to rebalance the supply/demand equation.  In other words, there must be a dip in the stock-to-flow ratio in order for the markets to continue functioning.

Sun, 09/02/2012 - 18:15 | 2756727 francis_sawyer
francis_sawyer's picture

oh I get it... a FREE MARKET ECONOMY... gee ~ why didn't I think of that?

Sun, 09/02/2012 - 18:44 | 2756752 Fractal Parasite
Fractal Parasite's picture

That's a logical comment, however..
The gold price is set not only by supply & demand and velocity, but also by fractional reserve futures, propaganda and other not-so-free market shenanigans.

For example, if the Gold price gets too high, the Powerz can always run a story about a 100 year old shipwreck that's just been discovered with hundreds of tons of gold bars that are about to flood the market.

Who remembers this from 2011?
200 tonnes of silver recovered from sunken ship

PS. while searching for the above story in the ZH archives, the response from the search engine was indicative of the discourse of this esteemed forum.

Enter your keywords: silver ship tonnes
Did you mean: silver shit tongue

Enter your keywords: silver shipwreck
Did you mean: silver trainwreck

Sun, 09/02/2012 - 22:09 | 2756938 CPL
CPL's picture

There is nothing to be done about it, not unlike like your pseudonym, run away fractal interest.


Like that insipid movie inception it does give an overview of how things get wrapped up from macro to micro in environmental definitions.  But fractional reserve banking doesn't operate that way.


We all know of the 1 dollar enters the bank and is loaned out 9 times.


This of course is insane enough to begin with that anyone with a buck may conjure 9 more dollars on top of that...with interest.  Let's not forget that interest riding at world wide at an average if adjusting all fungible pools of's around 0.0105%...then splash in ETN's, ETF's and a million option chains...with interest and service charges.


Now create an equities market and convince the first world that you can curb inflation by creating retirement containers, every first world dump has a scheme.  The only purpose to these containers is to curb inflation while increasing the credit supply.  So the middle class lock in their capital that can NEVER be touched until retirement with a penality (taxes at regular rate)...or before retirement with a penality (taxes at regular rate, but add the captial withdrawn to total salary that year).


With me so far?  Okay...this is where it get so fucking weird.


Now both the loaned money is then reloaned to other banks, at 1 dollar to 9 made situation and these are rolled up into very profitable credit generation devices.  See a bank doesn't WANT a profit, a bank operates on delivered credit, not capital.  Credit wants to be paid back over the term of forever and a day.  Capital requires immediate payment.


Since ther eis no real immediacy to paying anybody, anything ...that includes pensions now with the roll backs everywhere.  Ontario Teachers Union, the gold plate standard in all pension plans was completely destroyed yesterday night.  These are contributed funds over a century...coffers are empty.


Every pension fund on the planet follows it like a flock of birds.  Every.  Last.  One.


What was the fatal flaw?  Secondary pension schemes created by the governments and the banks themselves 25 years ago to completely undermine the public schemes.


Believe me when I say this.  We will be reading about senior military staff all over the world with the common theme of bouncing pension checks and even years long retroactive payments back into the system (because it's already happening) add insult to injury as they get older they will be unable to dump their existing properties to move to a more suitable area for medical treatment, health or whatever...because in a buyers uber market with nobody capable of obtaining the credit necessary to move the properties  further lock the pensions into a death spiral...we are just starting to see the snow ball rolling and people can just now hear it, soon they'll feel it.

Sun, 09/02/2012 - 18:38 | 2756746 AUD
AUD's picture

In terms of the gold price, the question is not whether the small loss of production will directly affect the price but whether the owners of the 160000 tonnes are prepared to cover this loss of production.

They most likely will, so no, this strike will have no material impact on the gold price.

Mon, 09/03/2012 - 00:13 | 2757076 PaperWillBurn
PaperWillBurn's picture

WHOSE 20 tonnes got cut off? Where are they now going to source the 20 tonnes from? Have you ever tried buying 20 tonnes of gold?

Mon, 09/03/2012 - 00:15 | 2757077 PaperWillBurn
PaperWillBurn's picture


Mon, 09/03/2012 - 01:34 | 2757119 ToNYC
ToNYC's picture

I can only take one suitcase if that: a 54cm x 34cm x 13cm rather smallish 70's American Tourister but the handle broke when/then I did the math and found 460 Kg was more than I could carry. Buying it is easier, trust me. I lost and forgot more gold than I have; the rest I wasted on ho's and carpets.

Sun, 09/02/2012 - 17:48 | 2756693 giovanni_f
giovanni_f's picture

Are you really that breathtakingly stupid? In terms of supply and demand gold is being consumed. What do you "think" (if this verb can be applied to a moron like you are) is the reason for the gold price chart looking like a  monotonically increasing function since 2001. Gold is not being consumed in the sense of being "eaten up". From the above ground stock only a part of the fraction in central banks possession is being made available (leased) to the markets to the tune of 2500 tons per year at current crimex prices in order to cover the mismatch between consumption (6500 tons/year) and supply (4000 tons/y).

Nice try but pointless. And don't abuse Perikles as your logo. Kim Kardashian fits you better.

Mon, 09/03/2012 - 09:14 | 2757441 Marco
Marco's picture

There is no demand for gold in kg ... there is only a demand for gold denominated in fiat currency at the time of purchase ...

Mon, 09/03/2012 - 10:33 | 2757531 giovanni_f
giovanni_f's picture



1. Once a good friend told me "Gonna buy a 1K bar of gold tomorrow" (he did). That proves you are wrong.

2. So what?

Sun, 09/02/2012 - 17:57 | 2756708 Doublescythe
Doublescythe's picture

I just bought a shit ton of platinum and diamonds with my AAPL profits.

Fuck it all.

Gems are the new currency.

Dungeons and dragons fo' life!


Sun, 09/02/2012 - 22:08 | 2756939 DosZap
DosZap's picture

Gems are the new currency.


Uh Huh, sure they, long term play Plat good idea.

For the next 3-7yrs, G & S are the go to for wealth preservation.

Hopefully you dropped the wad on Plat when it was 1398.00............................

Sun, 09/02/2012 - 22:11 | 2756942 FeralSerf
FeralSerf's picture

It's too easy to make high quality artificial diamonds.

Sun, 09/02/2012 - 22:38 | 2756975 DoChenRollingBearing
DoChenRollingBearing's picture

@ Doublescythe

I'm OK with the Pt.

Gems are NOT good as a currency.  Buy a diamond for $2000 (say).  Take it to your local diamond center (one in every big city) the next day and sell it.  How much will you get?  MAYBE $700.  There is a very ugly spread in the bid/offer in the diamond business.  Don't believe me?  Go try it...

Good move, + 1, for taking your AAPL profits!

Mon, 09/03/2012 - 06:54 | 2757287 tocointhephrase
tocointhephrase's picture

$2000 to $700 there's your store of value right there lmao.

Sun, 09/02/2012 - 18:51 | 2756760 Debeachesand Je...
Debeachesand Jerseyshores's picture

Where is Dennis Gartman?

Mon, 09/03/2012 - 06:54 | 2757289 tocointhephrase
tocointhephrase's picture

Buying more paper receipts I would imagine. 

Sun, 09/02/2012 - 21:41 | 2756888 ToNYC
ToNYC's picture

Russian Oligarchs and new cross-dressing Bane Capitalist Partners like Ryan Paul, no relation to Ron or AynRand, visiting NY lately have consumed a boat-load on fancy pastry Midtown. Other than that salient fact; whether it comes out of the ground or not has more to do with why this medieval Western Culture is so inextricably at its wit's ends. We all need so much that we don't need to think about it. If you do think about it, you shouldn't have bothered in the first place. When you get there, there you are, so why rush, you will miss everything transitory in the bargain? Save a Hell's worth of all Time and possible grief by seeing Walter Huston and Humphrey Bogart in "Treasure of the Sierra Madre."

Sun, 09/02/2012 - 21:54 | 2756922 DosZap
DosZap's picture



Correct it does still exist in many forms, and 80%+ is not available for sale.

The above ground STOCK # is not even close to 7yrs,much less 70.

If we continue on the path we are on, the physzz run will rocket prices up, and many will chase it going to get SOME.

This will create a real shortage.

China is taking all they can gets their mitts on, OFF the world stage, like all the So called third world up and comers.

Sun, 09/02/2012 - 22:31 | 2756966 DoChenRollingBearing
DoChenRollingBearing's picture

ruffian is correct.  Plenty of gold!  Stock vs. Flow

Mon, 09/03/2012 - 08:39 | 2757384 Marco
Marco's picture

Holy shit that's a lot of downvotes for something so utterly reasonable.

Sun, 09/02/2012 - 16:59 | 2756636 Black Forest
Black Forest's picture


Sun, 09/02/2012 - 21:19 | 2756895 ToNYC
ToNYC's picture

<removed> 1

Sun, 09/02/2012 - 17:03 | 2756648 yabyum
yabyum's picture

When ever I look at mining stock, I look at where the mine is located. South America, Africa et al. scare me into domestic miners. ( I take a beating either way ):)

Sun, 09/02/2012 - 17:06 | 2756652 jonjon831983
jonjon831983's picture

That court decision to blame the strikers for the deaths of their peers via police shooting was atrocious.  Kudos to them for striking.

Sun, 09/02/2012 - 17:07 | 2756655 jonjon831983
jonjon831983's picture

Well well well.. they retracted it.


`South Africa withdraws murder charges against miners – for now`


`South Africa said Sunday that controversial murder charges against 270 miners over the deaths of fellow workers shot by police, the worst such clash since the apartheid era, will be provisionally dropped.

Following a public furor, acting national director of prosecutions Nomgcobo Jiba, said that after having sought an explanation from the department’s lead prosecutors, she had taken the decision to review the charge.`

Sun, 09/02/2012 - 20:05 | 2756828 CompassionateFascist
CompassionateFascist's picture

Nomgcobo the Chimp "said" something? Amazing.  Now put it in front of a can write the Great South African Novel. 

Sun, 09/02/2012 - 17:14 | 2756665 Monedas
Monedas's picture

The illegal strikers killed 10 fellows with machetes and necklacing first  .....  most of the police shooters were black .... CNN tried to edit that out !   Zuma was conveniently close by with Mugabe .... this is orchestrated by AA .... African Acorn !

Sun, 09/02/2012 - 21:43 | 2756912 Id fight Gandhi
Id fight Gandhi's picture

Necklacing. Isnt that where the blacks light a tire on fire around the neck of their foe?

Sun, 09/02/2012 - 21:56 | 2756925 DosZap
DosZap's picture


Yes common practice of Nelson Mandellas wife.....................

Sun, 09/02/2012 - 22:15 | 2756950 DosZap
DosZap's picture



Sounds like all the MSM's coverage of the RNC, Condi is the only one speech that got aired.And there were several black Americans that spoke that were shafted.

Also, evidently someone has failed to realize the GOP has more Hispanics in state,and  Sentate, and House,Mayors positions..............another stat the sheeple will never hear.

Sun, 09/02/2012 - 17:08 | 2756656 Monedas
Monedas's picture

Sending African political amputees to the special olympics is the moral equivalent of blood doping and designer paraplegics !        Monedas    1929        Comedy Jihad Live Organ Broker Trade Fair 

Sun, 09/02/2012 - 17:10 | 2756659 JPMorgan
JPMorgan's picture

Shooting and killing a load of striking miners & protesters may not of had the desired effect that they expected.

Sounds like it's leading to wider spread unrest and revolt.

Sun, 09/02/2012 - 17:10 | 2756660 blabam
blabam's picture

Some traditions should be kept!

Sun, 09/02/2012 - 17:10 | 2756661 A Man without Q...
A Man without Qualities's picture

The problem with trying to lift people out of poverty is that they want to own things like refrigerators and washing machines which use a lot of electricity.  In order to be able to upgrade the network, Eskom is raising prices, which is putting pressure on both the workers and the mining companies that have huge power needs.  Prices rose 17% last year and Eskom are talking about raising tariffs by 14% per year for the next five years.  This is triple the rate of inflation.

 Add to that, miners are having to dig deeper and deeper and extract from far lower grade reserves.  Quite a few of these miners (Lonmin is a perfect example) are really struggling to survive even with current prices.  

It is a battle neither side can win, truth be told, the South African gold and platinum mining industry is in terminal decline.

Sun, 09/02/2012 - 17:14 | 2756667 Venerability
Venerability's picture

Veterans of the sector understand that a period of labor unrest - and this is one of the worst in decades - is always super-duper-Uber-goober-Bullish for PMs.

Eventually - and it's usually pretty darn quick - they always cave in to NUM.

That necessitates a higher price structure coming in throughout the industry, which leads to everyone and his sixth cousin from Capetown insisting on higher Gold prices.

Anyone who does NOT understand this really, truly needs to read back through the historical price movements over the past several decades, since the "Rainbow Revolution."

Couple it with sector moves in China which took effect - Oh, I dunno, TWO DAYS AGO! - and you will understand why the PM sector has an awful lot going for it now beyond all the coming worldwide QE.

I now think we FINALLY reach the inflation-adjusted Gold price target in the 2500 range by the spring high season of 2013 - provided we don't get another contrived and harmful Indian Gold Merchants' Strike.

Fortunately, India MAY at last see the Writing on the Wall. One should never trust India - but maybe.

Sun, 09/02/2012 - 21:41 | 2756910 CPL
CPL's picture

The west doesn't make anything.


I am hoping for yoursake you are self suffienct because you will be getting you wish of inclusion and seculsion soon enough.


We all will.  While you were slobbering over some stormfront faggotry fish wrap disguised as middle class values (like it ever existed), you ignored the obvious reason WHY SA is in deep shit.


No energy.  Think Pakistan is in the middle of a civil war because it's time?  How about the fairly well known and unknown civil INDIA...between power outages and the lack of food 350 million people now have developed a policial opinion.


And that storm will be here soon buttercup.  Head down, shut up and stay out of sight until you hear normal again.

Sun, 09/02/2012 - 17:26 | 2756680 PaperBear
PaperBear's picture

The shorts had better run to the hills.

Sun, 09/02/2012 - 17:57 | 2756707 scatterbrains
scatterbrains's picture

Hedgers too for that matter. I know I sure the fuck did Fiday whew!

Sun, 09/02/2012 - 17:28 | 2756682 HardAssets
HardAssets's picture

This is obviously bullish news . . . so we should expect a spike down in price before/at the NY open.

Sun, 09/02/2012 - 17:47 | 2756697 gwar5
gwar5's picture

Maybe they should agree to pay the miners in gold. Done.

Sun, 09/02/2012 - 17:49 | 2756700 dolph9
dolph9's picture

Mining is a difficult business.  If you invest you better know what you're doing.

Best to stick mostly with the physical metal which is already above ground.

Mon, 09/03/2012 - 06:58 | 2757292 tocointhephrase
tocointhephrase's picture


I would agree though, stick to the metal

Sun, 09/02/2012 - 17:52 | 2756701 scatterbrains
scatterbrains's picture

Of the 16 countries listed it appears that the USA stands alone representing those fiat central banker class that have an interest in suppressing the truth about hard money.  It would be interesting to see how the other 15 nations might react if it becomes obvious that something as small as a few mine strikes along with dollar and euro printing causes gold to explode above 2200ish.  Would we see more and more nationalizations, confiscations, sovereign hoarding as the world discovers that the fiat system is collapsing ? Then what happens to the price of gold as panic sets in and everyone rushes to sell their fiat at once before it becomes worthless?

Sun, 09/02/2012 - 18:17 | 2756731 GOLDTEETHSILVER...

Bingo. Supply & demand plus panic = big smiles on the faces of precious metals owners. Exit some time at the top of the panic...

Sun, 09/02/2012 - 17:53 | 2756703 Poor Grogman
Poor Grogman's picture

Flow of FIAT = increasing

Flow of Gold = decreasing

= < Rocket Science

Sun, 09/02/2012 - 17:53 | 2756704 UnpatrioticHoarder
UnpatrioticHoarder's picture

Actually latest stats show the top gold producers are China, Australia, US and South Africa in that order.



Sun, 09/02/2012 - 17:59 | 2756710 GOLDTEETHSILVER...

Happy Day Are Here Again!!

Follow The Yellow Brick Road...

Sun, 09/02/2012 - 18:05 | 2756716 The Shootist
The Shootist's picture

The zots are lucky to have a job, they could easily be replaced by machines like in other industrialized country's mines.

Sun, 09/02/2012 - 18:09 | 2756718 jimmyjames
jimmyjames's picture

With around 165,000 tons of gold floating around the world somewhere and annual world gold production coming in around 2,500 tons/yr-

Why would the loss of one third or even half that tiny amount in comparison to total gold reserves have much other than a knee jerk effect?

There is no shortage of gold and there can never be a shortage of gold-all it is for sale-it's simply a matter of-at what price-

Sun, 09/02/2012 - 18:10 | 2756721 buzzsaw99
buzzsaw99's picture

Agreud. 100 lbs per day is less than 20 tons per year.

Sun, 09/02/2012 - 22:05 | 2756936 FeralSerf
FeralSerf's picture

The float is probably not nearly so large.  Most physical gold doesn't change hands very often.

Sun, 09/02/2012 - 22:06 | 2756937 FeralSerf
FeralSerf's picture


Sun, 09/02/2012 - 22:32 | 2756967 dogbreath
dogbreath's picture

Currrent demand for physical is 4400 tonnes per year.   1800 tonnes or so is being sacrificed from mega hoards to keep the prices down so that the remaining 2500 tonnes of new mine production doesn't cost more.   It would be an interesting list of who holds any part of 168000 tonnes.

Sun, 09/02/2012 - 23:45 | 2757050 jimmyjames
jimmyjames's picture

Currrent demand for physical is 4400 tonnes per year. 


That much gold is traded every 5 to 8 days on the LBMA alone and that's not counting Dubai/Zürich/New York/Shanghai etc.

Where do we see central banks selling-gold trying to suppress the price?

Last i looked they were buyers-

Sun, 09/02/2012 - 18:24 | 2756734 Hubbs
Hubbs's picture

Is it a "good" thing (if you are a Chinese soveriegn investor) in the end for the big players like China to wind up owning all the gold? It seems like there is a steady drip, drip, drip of people having to redeem their gold to the "We Buy Gold" scam artists (to make ends meet I guess) and ultimately the big buyers.

 If all the world supply gets concentrated in too few hands, and  IF the vast majority (99.99999%) of the people in the world are left out not owning even a tenth of an ounce, then by necessity another form of money or barter will have to emerge. 

Sun, 09/02/2012 - 18:47 | 2756757 jimmyjames
jimmyjames's picture



The supply already is concentrated in too few hands-

The vast majority don't even own a tenth of an ounce and i doubt they ever will-unless we go to gold standard-then anyone who has money or draws a paycheck will have gold-

Central banks around the world will become the biggest gold buyers and they just might be doing it in a panic to save their currencies-because the first one that is forced to weight to gold-will be the undoing of all of them in a rush as they're all forced to compete to strengthen currencies-




Sun, 09/02/2012 - 19:19 | 2756786 lakecity55
lakecity55's picture

We must begin mining operations in our back yards!

Silver, Bit-chez!

Sun, 09/02/2012 - 22:35 | 2756970 dogbreath
dogbreath's picture

That chart represents where deflation has occured and where inflation will occur.

Sun, 09/02/2012 - 18:25 | 2756736 Its_the_economy...
Its_the_economy_stupid's picture

What will the Algo's say on Tues???


Sun, 09/02/2012 - 19:00 | 2756768 Conax
Conax's picture

I'd bet the traders at JPM are at their desks tomorrow.

Sun, 09/02/2012 - 18:41 | 2756747 eddiebe
eddiebe's picture

Pay those poor bastards a living wage already!

Sun, 09/02/2012 - 21:23 | 2756899 analyzer_66
analyzer_66's picture

didnt you see the movie "BLOOD DIAMOND" ?


Sun, 09/02/2012 - 18:43 | 2756750 q99x2
q99x2's picture

Anunnaki experienced similar problems before they headed out of Dodge.

Thank God for unions.


Sun, 09/02/2012 - 19:02 | 2756771 knukles
knukles's picture

I been a wonderin' who left them little holes all over upper Peru.
And by the by, for all the majestic gold been uncovered in tombs, grave, etc., whole shitloads,  bunched and bunches of the stuff all of very fine purity, just who and where the fuck did the refining take place?  What mercury? I mean in the 1600's +/- 100 years Mercury became more valuable than silver of gold, used in the processing, etc.  "Quicksilver"
But  ... oh neverthefuckmind....

Just like all them Egyptians building the Pyramids.  Not

Sun, 09/02/2012 - 19:31 | 2756794 Miss Expectations
Miss Expectations's picture

Follow the's an interesting journey which leads to ancient civilizations, gold and the mercury space program.  I can't find the article anymore, but I understand that following a successful campaign,  a young Caligula covered himself in mercury for his triumphant return to Rome.  (Some believe that this caused his later insanity.) 

Sun, 09/02/2012 - 19:50 | 2756808 jimmyjames
jimmyjames's picture

(Some believe that this caused his later insanity.)


More think it was Syphilis-he was known to be sort of a slut as i understood it-

Sun, 09/02/2012 - 22:02 | 2756932 FeralSerf
FeralSerf's picture

I thought Columbus brought syphlis back with him from the New World.

Mon, 09/03/2012 - 10:27 | 2757616 falak pema
falak pema's picture

well it was all that hard on from cavorting with spanish sailors. Syphilis is a rich man's disease. The french caught it from the genoese in Naples during their Italian war in 1493. Who caught it from shagging arab goats, who caught it ...its a real menagerie and its all Noah's fault, he didn't tell his sons to not cavort with the other species on the Ark.

Of course the official version is that Martin Alonso Pinzon, fellow traveller of Christopher's voyage, caught it from cavorting with Tainos local women on Hispaniola island. But that is all "our version"; always blaming "eve" for our sins.

Look for the goat trail, I say! 

XVIe siècle - La syphilis, cadeau empoisonné du Nouveau Monde -

Sun, 09/02/2012 - 22:19 | 2756956 DosZap
DosZap's picture



How did he mange that, mercury will not adhere to human skin.

Mon, 09/03/2012 - 10:14 | 2757593 falak pema
falak pema's picture

they called silver mercury; and lead was called gold, they did have banksters in those days too; real money debasement greedy tools.

Sun, 09/02/2012 - 19:05 | 2756774 WmMcK
WmMcK's picture

Nibiru, bitchez.

Sun, 09/02/2012 - 19:17 | 2756784 lakecity55
lakecity55's picture

....and in the wild, wild, west! I saw 007 fighting aliens undercover as a cowboy.


Sun, 09/02/2012 - 18:46 | 2756753 pan
pan's picture

Gold bitchez!

Sun, 09/02/2012 - 18:46 | 2756754 midtowng
midtowng's picture

The story here isn't about the supply of gold or platinum. The story here is about labor strife.

Sun, 09/02/2012 - 18:58 | 2756767 pan
pan's picture

And how it could affect supply:



Sun, 09/02/2012 - 19:26 | 2756790 scatterbrains
scatterbrains's picture

Could we see Mine owners encourage strikes to drive the price higher and thus their stock value ? Or an Organization of Gold exporting biatchezz kinda thing ?

Sun, 09/02/2012 - 19:02 | 2756770 catch edge ghost
catch edge ghost's picture

Gee. It almost sounds like there is a disconnect between the price of the products and the costs to the producers.

It's a good thing there is no inflation else things might start getting ugly.

Sun, 09/02/2012 - 19:16 | 2756782 lakecity55
lakecity55's picture

Haha. Sounds like one of the miners found a copy of retail prices and it went viral.

"Pay us in Gold, Banksters!"


Find more miners!

Sun, 09/02/2012 - 19:08 | 2756777 HungrySeagull
HungrySeagull's picture

Simply scan the planet and assign every ounce to people who want to buy them minus the 5 dollars it takes to dig up.

Sun, 09/02/2012 - 19:36 | 2756799 Dr. Gonzo
Dr. Gonzo's picture

The NY and London gold ETF's are going to have to work extra overtime now in their imaginary gold accounting department to account for this new physical shortfall. 

Sun, 09/02/2012 - 19:43 | 2756802 Thought criminal
Thought criminal's picture

If you take into account how bloated the whole PM market is with fake gold and silver, then it will have approximately zero impact on the price.

Sun, 09/02/2012 - 19:52 | 2756807 Arnold Ziffel
Arnold Ziffel's picture

"No one could have seen this coming," said The Bernank as he gets hit in the Head with a platinum coated Black Swan.

Plt, palladium are going to soar and pull the Barbaric yellow and silver metals up with them.

Sun, 09/02/2012 - 21:11 | 2756873 TheObsoleteMan
TheObsoleteMan's picture

I's hard to believe looking back, that South Africa  had a GDP that rivaled many western European countries as recently as the late 1980s. Look at the shithole it has become today. That is what happens when a nation embraces socialism. The "old crocodile" Botha may have been controversial, but he knew how to let markets works, and he knew how to deal with communist {shoot them or put them in prison}. Today the whole world worships Mandela as a global hero, what a sad joke!  The Clintons and the Kenyan pretender suckle at his breast at every photo opportunity. He is held up as a role model in our public schools. And how did all of this happen? Why did all of this happen? To get answers, one must look elsewhere, and from a earlier period. It began in Rhodesia {modern Zimbabwe} in the 1960s. The western powers pulled their support of Ian Smith and sided with Mugabe. SOCIALISM/COMMUNISM WAS FORCED ON BOTH COUNTRIES BY THE WEST. This is why there is never any condemnation of Mugabe from the west when he massacres whites. Through the various UN front organizations, the US sends aid to him, and Zuma of South Africa {an admitted communist AND RAPIST.} Why would the western powers demand such political changes? Because the western powers want dependent, obedient nations to fall in line with their plan of global governance. Under Smith and Botha, the nations were strong and independent. Now they are in economic shambles and answer to their financial benefactors. Not even Botha shot striking miners. It appears Zuma is showing his true colors:RED.

Sun, 09/02/2012 - 22:12 | 2756944 The Shootist
The Shootist's picture

Ian Smith, what a history maker. UNILATERAL DECLARATION OF INDEPENDENCE, bitchez!

Mon, 09/03/2012 - 03:36 | 2757175 AnAnonymous
AnAnonymous's picture



Western powers? Hard to know.

But for 'american' indo Europeans, the answer is very easy.

The South African miracle was just the illusion as brought by Smithian economics, the core of 'American' economics.

The faster South Africa shipped their wealth away, the more they looked rich.

One guy lives on a billion units of resources. For each ten units that are sent abroad, the guy keeps one for himself. The faster and larger he sents abroad, the more he appears rich through 'American' economics standards.

But physical reality kicks in and quickly, reality forces to see that instead of getting richer, the guy has gotten poorer faster.

This reality comes as unavoidable when the depletion point is nearing.

This is the case for South Africa, they are past the peak in many, many things they have been extracting there.

And for 'American' indo Europeans, it is much better for the narrative that some 'American' negroes are in charge for the unavoidable downfall.

Because 'American' indo Europeans do not know how to cope with the issue of depletion other than by transfering the consequences of it onto a third party.

Mon, 09/03/2012 - 03:47 | 2757185 akak
akak's picture

There really is no bounds on your spittle-flecked anti-American bigotry and concomitant hypocrisy, is there, you ChiCom troll?

Mon, 09/03/2012 - 07:53 | 2757329 nmewn
nmewn's picture

Just imagine AnAnus sitting there, Jabba the Hut like, blabbering on about everyone elses "depletion" with his one billion straws stuck in every corner of the world...sucking like a vacuum cleaner.

Chinese citizenism is eternal.


Mon, 09/03/2012 - 08:07 | 2757344 AnAnonymous
AnAnonymous's picture

That takes a lot of imagination... Wooo, Earth still has corners? Man, one could think that the 'American' space missions had killed that canard. But no, 'Americans' still think that the Earth has corners.

Such a giant leap for humanity...

Mon, 09/03/2012 - 08:10 | 2757348 nmewn
nmewn's picture

Well now, AnAnus has a sense of humor...there's some progress.

Mon, 09/03/2012 - 08:19 | 2757355 AnAnonymous
AnAnonymous's picture

Holy cow! I have a sense of humour. Maybe one day, I will reach human being status. Hoorah! Hoorah!

Mon, 09/03/2012 - 08:39 | 2757383 nmewn
nmewn's picture

Not likely in my honest one anyways.

Whats up with your Chinese government owned CNOOC trying to aquire Canadian oil firm Nexen? Thats in my backyard you thief. I seem to recall something about "resource depletion" up thread ;-)

"CNOOC Limited and Nexen Enter into Definitive Agreement

Announced on July 23, 2012 the proposed US$15.1-billion acquisition of Nexen by CNOOC Limited presents important opportunities for both companies and their shareholders.

The transaction, expected to close in the fourth quarter of 2012, will see Calgary established as one of CNOOC’s international headquarters which will manage Nexen’s global operations and CNOOC’s existing operations for North and Central America."

Mon, 09/03/2012 - 08:04 | 2757340 AnAnonymous
AnAnonymous's picture

There is no bound to 'American' fantasy. As usual, unable to address any point, piling on ad hominems and such...

Praised be the Chinese! Without them, 'Americans' will be forced to use wild cards like the Somalias to avoid facing 'Americanism' reality.

Mon, 09/03/2012 - 07:13 | 2757302 Moe Howard
Moe Howard's picture

Announced on the very day of the handover of power to the ANC was a giant aid package from the United States.

Instantly, upon the start of black rule, they needed a hand out. Not.

US aid is bribery for those in power, nothing more or less.

Mon, 09/03/2012 - 08:26 | 2757357 i-dog
i-dog's picture


and invitations to Vatican ceremonies, notwithstanding an EU travel ban:



Sun, 09/02/2012 - 21:06 | 2756881 negative rates
negative rates's picture

Are those green shoots ready to turned into gold and sold?

Sun, 09/02/2012 - 21:32 | 2756902 analyzer_66
analyzer_66's picture

The average mine worker earns 3,800 South African rand ($570; £346) each month.


Sun, 09/02/2012 - 21:40 | 2756908 Tortuga
Tortuga's picture



Sun, 09/02/2012 - 21:56 | 2756927 NidStyles
NidStyles's picture

I bet the spot price doesn't even budge. If it were silver then something might happen.

Mon, 09/03/2012 - 07:54 | 2757332 Absinthe Minded
Absinthe Minded's picture

Why would it budge? They have all those paper oz. out there to hedge against just this sort of thing. Tell 'em MDB.

Sun, 09/02/2012 - 23:32 | 2757035 savagegoose
savagegoose's picture


Sun, 09/02/2012 - 23:31 | 2757036 savagegoose
savagegoose's picture

its only $10 to mine an oz of gold ...

if priced in 1913 dollars.

Mon, 09/03/2012 - 02:35 | 2757148 Sparky_ZA
Sparky_ZA's picture

There is a huge drive here (South Africa) to nationalise the mines. 

