GOLD MINES Going OUT of BUSINESS Due to Low Gold Prices!

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Gold prices have been artificially held down for the past few years by the banking cartel, desperate to keep confidence in the false stock market and the debt-based Ponzi-fiat-money scheme. 

Yet mining companies are starting to go out of business, as it cost more to mine an ounce of gold, than what is the selling price per ounce.

And keep prices down, they have. But demand is way up. How long can they defy the forces of economics? How long can demand for precious metals be high, the supply low, and prices low? 

What happens when there is no supply to meet that demand? 

 

Peter Schiff makes the case as to why you should buy precious metals now, before the market turns. In a radio interview with Goldseek, Schiff says: “Jim Rickards is calling for $3,000 gold and $100 silver. The conditions could shift overnight, so abrupt, that many people miss the opportunity altogether. 

Schiff: I would agree that when the market turns, if you’re not already in the market, you’re not getting in. 

I can see the gold market moving $200-$300 in a day. I think this happens when enough people realize the Fed is not confident in the recovery and that it is actually contemplating more quantitative easing, we could get a scramble back into gold. There is no supply to meet that demand and the price would have to skyrocket.”

Interviewer: Martin Armstrong is reporting a major dislocation in gold. According to some of his sources, any major buyer…in the precious metals market is finding delivery virtually impossible for anything less than $600 over spot. And the only place they can find sellers is in Asia. 

Schiff: “We’re not experiencing that right now on the retail level because we don’t have clients that are buying it by the ton, but by the ounce. But if you have major players that are looking to move significant amounts of fiat into gold, and they are having a problem with physical, that really shows you how tight the supply is.”

Andrew Hoffman agrees, “This cartel is out to destroy the price of gold. The junior mining industry is dead. Barrick and Newmont have to merge, and then you will see a “paralysis” of the industry that will make the oil paralysis of 2000, when the price of oil went down to $10 – look like nothing. I’ve seen forecasts that say gold supply is going to be down by 15% over the next 5-7 years.” 

“Although oil prices have gone down, the miners’ need twice as much oil to mine as they did years ago. There are very few expenses that they can now cut, that they haven’t already cut in the last year and a half. We should see a good amount of bankruptcies soon in the mining sector,” says Wall Street for Main Street on the Daily Coin. 

In fact, the huge gold miner, Allied Nevada Gold Corporation, the operator of the state’s “Hycroft mine, filed for bankruptcy after …lower gold prices eroded profitability at its sole working property,” reportsBloomberg.

The cartel’s price suppression is forcing more companies out of business, further reducing supply.

Alistair MacDonald reports, “Gold Canyon Resources Inc. has 5.1 million ounces of gold and 26 million ounces of silver underground on property in Northern Ontario. It owns little else.

The Toronto-listed company is part of a generation of junior mining companies that has gone into hibernation. Rocked by a three-year-old mining downturn, these companies have reduced themselves to a skeleton staff, locking up their properties and stripping out almost all costs.

Nonetheless, the downturn has stalled their exploration, historically a major contributor to new supply of metals, from gold to copper.”

“Thousands of gold mines have been abandoned in South Africa, where gold has been mined for more than a century, as mines get older and cost pressures squeeze companies to such an extent that they have to close marginal mines,” says Business Times.
 

So what does a gold owner need to do? First, do not purchase gold in the US. All sales from the US Mint are recorded by name and gold dealers have to run your name through a “terrorist” list before you buy, so again, there is a record. 

Karatbars International is a German company that sells gold in currency-size denominations, grams, to be used specifically in an economic collapse. 

They are already setting up K-Exchange centers all over the world in 123 countries, which are simply stores that sign on to accept Karatbars gold cards as payment for goods and services. 

The company specifically made their gram bars weigh in at 1.01 grams, to avoid a future VAT tax on 1 gram bars. They do not report your purchase nor your name to any country. You do not need to provide them with a Social Security Number. 

Karatbars International offers free storage in Germany with their most secure storage facility – Prosegur. Economically, Germany is the strongest nation in the European Union and has very strict business laws.

 

Source: GramsGold.com