Martin Armstrong: New Supply Could "Crush Gold"
Thursday, July 30, 2015 6:26
% of readers think this story is Fact. Add your two cents.
I read Martin Armstrong’s blog on a near daily basis (I have his site bookmarked in my Feedly reading list). Sometimes he has interesting predictions to share, sometimes he adds some historical perspective, other times he pumps out some absolute garbage. Here is one example of the latter:
“Well, when it rains it pours. A new discovery of gold has been made and the quantity expected is up to 46,000 tons of gold, whose market value is estimated to 298 billion US dollars if the market stays the same. The entire USA gold reserve is 8,000 tons. So we are talking about a sizable discovery in the Sudan. From a supply-demand perspective, this could crush gold.” – Martin Armstrong
Armstrong’s source? Sputnik News, the BuzzFeed of Russian propaganda. Here are some key points from the Sputnik article and a couple more sites I found carrying the news (none of which I would have any confidence in).
- Feb 2014 Sudan grants 9 Russian companies permission to explore for minerals.
- Sudan’s total Gold production during first half of this year reached 43 tons.
- Russian company Siberian for Mining discovers Gold reserves of 46,000 tonnes.
- The market value of this gold is U.S. $298 billion.
- Zhukov (CEO), plant will be €240M and have production capacity of 50t/pa.
A few things I see wrong with this picture.
It would not be possible to firm up 46,000 tonnes of (proven) Gold reserves in 18 months. The mobilisation of drill rigs, geological expertise and utilisation of laboratories for testing would have been breathtaking, like no other mining and exploration venture you had seen before. After all, 46,000 tonnes of Gold is roughly 25% of estimated above ground Gold that we’ve mined through all history and would almost double the proven Gold reserves we already have waiting to be extracted. Exploration for Gold reserves is an expensive and time consuming process, Gold mining and exploration companies often take years to firm up a 1-2 million ounce (30-60 tonnes) deposit, let alone something of this scale.
Furthermore 46,000 tonnes of Gold (in above ground form) is worth far more than US$298 billion at market value. Try $1.6 Trillion.
My initial though was that perhaps the 46,000 tonnes was a reference to the total volume of dirt containing the $298B in Gold, but that still doesn’t make sense as Gold content of the earth would be way too high… maybe the figure was supposed to be $298M (not billion) worth of Gold, but even that by my calculation would have required Gold content of around 200g/t (not a chance, most miners these days operate on mining ore around 1-2g/t).
If anyone else can make sense of the figures or find another source with better information about the find, I’d welcome your input in the comments below.
But just for a moment lets imagine that Martin Armstrong wasn’t spreading nonsense that has no basis in reality and that this company had proven up 46,000 of actual reserves ready to mine and “crush Gold” as Armstrong so eloquently puts it… I have had other commentators say “what if” about a massive Gold find in the past.
This company is spending €240M (US$263M) on a Gold plant with production capacity of 50t/pa. How fast are they going to bring that 46,000 tonnes of Gold to the surface and what would the cost be to do so? Even if they spent billions of dollars building new massive plants with the intention of bringing 1,000 tonnes of Gold to the surface each year from this one find (increasing current annual mine supply by around 35%) and assuming global Gold infrastructure expanded to process this additional capacity, it would only add a little over 0.5% to total above ground supply each year.
Meanwhile, global debt has increased by an astounding 40% since 2007, despite having a Global Financial Crisis during the same period.
Somehow I don’t think Gold has much to worry about from the discovery of a massive new deposit. Of more concern is the supply / demand of and for existing above ground Gold.
—————————————————-
Source: http://www.bullionbaron.com/2015/07/martin-armstrong-new-supply-could-crush.html
Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).
MOST RECENT
HELP KEEP NEWS FREE
DONATE
HERE
| Online: | |
| Visits: | 1,599,621,523 |
| Stories: | 8,139,708 |
Wanted: Citizen Reporters,
Whistler Blowers, Insiders
Whistler Blowers, Insiders
"Not by might, nor by power, but by my spirit, saith the Lord of hosts." Zechariah 4:6
Today's Top Stories
Featured
Top Global
Top Alternative
Good. Then sell me yours on the cheap.
also why would this Russian mouthpiece put out information sending gold lower? Russia is buying gold right now!
The lower it goes the more they will BUY!!! perfect setup!
Why would this discovery ‘crush’ gold prices? There is no more supply and demand law being followed in the precious metals marketplace; nor any regulation. The investment banks have smashed downward the prices via naked short paper without anything to back those fake trades up. Every morning around 7 A.M. or so, EST, these trades take place and drive down the market price of gold, silver, palladium, platinum, etc. I have watched this phenomenon for the past year take place.
In the meantime, and juxtaposed to this fraudulent trading, worldwide demand for physical silver and gold has skyrocketed. China buys it by the ton, and has way more gold stored than they let on. I have read the commentaries of numerous Hong Kong based hedge fund managers during the past two years relay how the gold is moving from the western bank vaults, is being melted down and re-configured with the Chinese central bank logo, and on to safe storage facilities China. All of our world’s financial markets are so rigged that nothing seems real any longer. The U.S. stock market keeps going up, up and up while the GDP numbers indicate a severe recession still occurring. Unemployment numbers are a sham, and the housing market horrible. Automakers want you to lease now, as so many car buyers are defaulting on their loans. Student loan defaults are very high. It is all the biggest bunch of bull crap imaginable…and the sheeple just keep sucking on it.
Good Info…Russia and America work on the same side screwing humanity.
Russia and America are the Best Friends For EVER. Whenever they want to destroy a country they come from opposite sides in the name of Communism/Democracy – Socialism/Capitalism aka any opposite ideologies with a common ground on Freedom. This is the same tactic they used for over 100 years now.
List of countries they have divided and ruled and butchered millions of local population.
Whenever US & Russia ZERO-IN on any country…Its guaranteed Innocent millions in that country will die.
1. Germany
2. Korea
3. Balkans
4. Combodia
5. Vietnam
6. Yugoslavia
7. Afghanistan
8. Libya
9. Syria
and now
10. Ukraine
Is their any doubt looking at the past history of these two countries involved in so called peace and freedom of its local population and then murdering millions and quietly leaving the scene as Russia has done often in the past with America staying to butcher more.
Bad Cop = Russia
Good Cop = America/EU
Match Made In Heaven
Thrilled to see the assumptions & calculation done above in trying to uncover the truth about the 46,000 ton gold story.
As someone working in the trade within the Sudan, I can assure you it’s no more than an absolute political throw, aimed at cooling the angry mob (population) at a time of severe hardship within the country.
To affirm this further, the Sudanese currency lost 10 % of its value in the 2 weeks after this news emerged, unheard of in terms of currency movements for a country that uncovered billions of dollars worth of reserves ( the country’s GDP is only $100 Billion so you can appreciate the magnitude of this discovery if it were in-fact genuine) which is not.
With gold prices at the lowest for 5 years and miners closing down, Russia can easily snap gold from struggling miners all over the world than go about throwing millions of dollars in a country where your wealth can be confiscated with a signature.
Sudan is also sanctioned so its gold has limited marketability so why would any sane investor chase it ?
Obviously the FED , the JP Morgans & Co will be pleased with this type of news to crush gold lower, I wonder if they have any hand in it ??