Submitted by SD Contributor SRSrocco:

In 1998, Nevada was actually the 4th largest gold producer in the world generating 78% of all the gold mined in the United States.  We can also see some interesting changes when we compare the two charts.

China moved from number six in 1998 (150 tonnes) to number one in 2011 (355 t).  The biggest loser turns out to be South Africa which lost its number one position (465 t) in 1998 to become number 6 (190 t) in 2011.  Furthermore, Russia moved up to the 4th largest producer in 2011 (200 t) from the 7th slot in 1998 (105 t).

Isn’t it interesting that China & Russia have increased their gold production the most compared to all the other countries in the past 13 years?  Their combined total was 555 tonnes in 2011, up from only 255 tonnes in 1998.

Do you think they are motivated to mine and acquire as much gold as they can?  I wonder why?

I have been farting around looking through the past Major Mines of Nevada Publications.  What a wonderful publication.  They list all the separate gold and silver production figures for all the individual mines in the state.  Their last publication was for 2010.  I spoke with David Davis the other day from the Nevada Bureau of Mines and Geology about some issues on gold mining in the state.

He told me, now that the price of gold has hit $1600+, some of the mines are actually drilling for assays underneath the huge waste rock piles.  When they deposited the waste rock years ago, they never imagined they would utilize the lower grade ores in these areas.  I spoke to him about falling gold ore grades and increased diesel consumption.  He responded by telling me that he actually had never thought about it.

Regardless… I found it simply astonishing that Nevada was the 6th largest gold producer in the world in 2011:

Of the 237 metric tonnes of gold produced in 2011 in the United States, Nevada produced 74% of the total or 176 tonnes.  Nevada produced more than Peru, Canada, Indonesia and Ghana.  And it was only behind South Africa by 14 metric tonnes.   Just amazing to see one state in the entire USA produce more than most of the other countries in the world.

Even though this does seem quite impressive… it’s nothing compared to the gold Nevada produced in 1998…the year it peaked (we shall see):

Nevada produced a staggering 8.8 million oz of silver in 1998, 3.2 million more ounces than it did in 2011.  In just 13 years, Nevada’s gold production has declined 36%.  One can only imagine the decline in ore grades.

If we compare 1998 to 2011, we get the following:

In 1998, Nevada was actually the 4th largest gold producer in the world generating 78% of all the gold mined in the United States.  We can also see some interesting changes when we compare the two charts.

China moved from number six in 1998 (150 tonnes) to number one in 2011 (355 t).  The biggest loser turns out to be South Africa which lost its number one position (465 t) in 1998 to become number 6 (190 t) in 2011.  Furthermore, Russia moved up to the 4th largest producer in 2011 (200 t) from the 7th slot in 1998 (105 t).

Isn’t it interesting that China & Russia have increased their gold production the most compared to all the other countries in the past 13 years.  Their combined total was 555 tonnes in 2011, up from only 255 tonnes in 1998.

Do you think they are motivated to mine and acquire as much gold as they can?  I wonder why?

  1. Steve   I surmise that China will work all out to produce as much gold as possible, either from the legal mines or the bootleg ones.  It’s thought that the illegal ones produce as much as the legal mines. 
    I wonder how much it costs the Chinese mines to produce gold given their EROI calculations.  If they buy in the external markets they pay spot.  If they mine, gold must cost much less per ounce.  Their blended costs for gold acquisition must be a good deal for the Chinese government.
    Nevada is my home state. Mining is the only business that is doing well in the state X prostitution.  I hope they start culling the tailings for gold. In Virginia City there are active mining operations working the tailings left over from the Comstock lode.  Even Mark Twain is getting excited about this.
    I’m for seceeding from the union, creating a fully monetized currency and dumping our US senator Harry Weed.

    • I just gotta ask, AG… why do the people of Nevada keep re-electing that SOB?  Is it merely to get him out of the state?  As desirable as that is, it puts him in a position to do a lot more damage to America than if he were merely just another corrupt state politician.  :-(
       
      As to Russia and China… I believe that neither of these countries has really given up on socialism.  No, they do not believe in it except as a way to attain power and control.  They are all about domination.  They want to rule the world and tipping the US off its perch would be a major coup for them.  The best way to achieve this is via currency manipulation to bring about an end to the US dollar as the World’s Reserve Currency.  What better way to do that than to create a new gold / silver-backed trade currency that cannot be printed to extinction and that holds its value?  Of course, to do this they first would have to collect massive amounts of gold and silver.  Hey, wait a second!  <insert forehead slap icon here>
       
       
       

  2. Nice batch of information thank you. 
     
    Looks like supply is going to get real short.  The other gold acquiring countries have figured it all out.  They know there is no way we can pay back $16 Trillion in debt without devaluing the dollar something fierce.  These other countries just want to get as much gold as possible before everyone has to go on a metals standard.  That is the only way this whole mess can be fixed.  Unless going to war to capture a country is on the table but I doubt it.
     
    The unfunded liabilities have to be considered also and those figures are even more staggering.  Just going by memory something like $222 Trillion comes to mind for the US.  Anyway those are figures for how far it is to the next star in outer space and shouldn’t be used in banking.  So to really get this under control gold and silver are going to have to end up with some serious price tags associated with each.  They are the last pieces of true money on planet earth.
     
    Should have been a farmer in Nevada with some metal on my land.  That would have worked out really good.

    • “The unfunded liabilities have to be considered also and those figures are even more staggering.”
       
      Yes, they are.  In fact, they are so staggering that it is clear that they are not going to be paid.  It’s no longer about politics.  What happens from here on out is just about math.

  3. China and Russia are preparing for a new world trading scheme which revolves around gold and not the USD.  I wonder how other countries that do not hold gold will fare in this new regime (my country, Canada, sold almost all our gold a long time ago). :o

    • Agreed!  And we can be absolutely certain that this will all be of tremendous benefit to Russia, China, and their closest allies… but not to any of the Western Europeans, Americans, or Japanese people.  :-(
       
      Yes, the Brits sold a lot of their gold back in the late 1990s… when gold was at a FAR lower price than it is today.  So much for all that talk about gold being “an archaic relic”.  If Russia and China are able to pull off their economic plans, we’ll see who and what are relics!
       

  4. Ed  The people of Nevada elect Harry Reed because he bring home Federal goodies like few others.  He is a conniving, sawed off, corrupt  weasey little s*** with a nasty temper and a long political memory.  We also have a dumb as a box of rox republican senator so things balance a bit. Reed has feathered his nest with so many political payoffs that he is worth maybe $25-50 mill.  He owes the labor vote and delivering that to the DC Dronosphere is worth its weight in gold and silver. He was instrumental in getting Obamacare through. His former profession as a semi pro prize fighter means he can arm twist with the best and get even the most stalwart Dem to roll over, along with the more cheesy wussy republicans–as if there is a difference.
    Our local politics are more conservative with a very part time legislature that usually adjourns before screwing things up too much.  We have no state slave tax, capital gains taxes or estate taxes.  The biggest business tax payers are the casinos, (gambling ones not banking)*, mining and prostitution.   When the state was really up against it with revenues in the crash of 2008 some legislative pimp asked if any industry would be willing to pay more in taxes.  Miners and hookers said yes.  I guess it’s because both are involved in drilling. 
    *odds are better at Sharkey’s Casino than JPM  IMO.

    • So their greed for the federal trough exceeds their otherwise good sense on this issue?  Too bad.  The USA would be FAR better off without the likes of Reid, Pelosi, Boxer, Feinstein, et al.  Not that the Repubs have their act together but some of the Tea Party folks seem decent.  Perhaps they are the equivalent of gold and silver in an otherwise fiat political system?

      It does sound as if Nevada state politics are decent.  Good job on that, Nevadans!
       

  5. ED-B… you don’t have to worry about China or Russia taking over the world.  The will suffer from the ravages of Peak Oil just like the rest of the world.  The will start to become a bigger place again.  Colonization and Globalization will dry up and blow away.

    • I’m not so much worried about them taking it over as egging on the collapse that is coming anyway and then ending up with most of the resources on this rock.  At that point they WILL be able to dictate their terms in whatever manner they wish… and they will.  Don’t for a second think that these guys haven’t studied capitalism intensively and are very much aware of its strengths and weaknesses or that they are unprepared to exploit them to their maximum advantage and our maximum disadvantage.  It is better to overestimate an opponent than to underestimate him, IMHO.

      Peak oil?  Hmmm… maybe that is why they are buying up oil fields in various parts of the world and why they have not yet bothered to exploit the South China Sea oil deposits, which are massive.
       

  6. I believe that China and Russia are preparing for the dollar collapse which will destroy all fiat currencies including theirs. Those two countries have to find a way to pay their citizens after the dollar collapse. What I hate to see is that here in the west, there are a lot of Cash4Gold ads and the western governments are not encouraging its own people to buy gold and silver while the Chinese government is encouraging its people to buy gold and silver.

  7. It’s estimated that 25% of the world’s petroleum reserves are under the polar ice cap.  With the accelerated melting of this area the fight my the countries who claim the top of the world will be fierce.  Russia, Canada, the US and others appear to be laying claims

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