September Silver Eagle sales updated today at 1,961,000 oz. If we keep up with this pace, we may see the highest month of sales for they year (not including Jan).

For the OFFICIAL MOVEMENT of GOLD out of the United States, June was a record export month. Here is the data: [Read more...]

THE POPPING OF THE SHALE ENERGY MIRACLE MEANS PEAK METALS SOONER THAN LATER

As the world wakes up to the fact that unconventional liquid energy sources will not be able to offset the ongoing depletion of conventional crude production, the world will have to survive on less in the coming years;  and that means less gold and silver.

The popping of the SHALE GAS MIRACLE just erased any remaining doubts that the world will be able to continue its delusion of maintaining business as usual… forever. [Read more...]

Lindsey Williams did an interview with Goldseek last week explaining the upcoming collapse of the U.S. Dollar & economy as well as the shutting down of the biggest oil drilling rig in the world –THE LIBERTY RIG.  Lindsey was a pastor to the elite during his stay in Alaska (1970′s) when they were working on the Prudhoe Bay oil field.  Lindsey believes he has an ‘INSIDE SCOOP TO THE ELITE” and shares this supposed information on interviews and DVDs.

Some years ago I started to listen to Alex Jones who would have Lindsey Williams on as a frequent guest.  While Lindsey was stationed in Alaska, he was told by the elite that there was the biggest oil reserve in the world right off the coast of Alaska near Gull Island.  They told him that this oil reserve was secret and they were not going to tap into it until the price of oil was much higher.  Basically the elite were telling Lindsey… there was no shortage of oil, rather they were controlling the world by manipulated the price of oil.

As time went by, some of the things that I heard (or didn’t hear) on the Alex Jones show or in Lindsey Williams interviews started to make me quite skeptical.  [Read more...]

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? [Read more...]

Submitted by SD Contributor SRSrocco:

I at times have wondered just how much gold there is in the world.  I have read some of these articles and reports of the so-called hidden huge hoards of gold. 

While these conspiracies sound nice on paper… if we look at the historical gold-silver ratio of production, we may find some answers. [Read more...]

Submitted by SD Contributor SRSrocco:

Gold miners are facing several challenges.   Not only are costs increasing, but the Investment or CAPEX spending is increasing higher than most had forecasted.  The problem with the gold mining industry is the same with the oil industry — that is — they have to increase production every year to offset depletion rates.
The world has to increase gold production approximately 4.3-4.4 million oz a year, just to keep global gold production flat!

According to Nick Holland’s (CEO of Gold Fields) recent presentation on the top 8 gold miners, average gold ore grades have fallen 5% per year in the past five years.  This means that the gold mining companies have to either increase total processed ore or bring on new projects to offset this 5% decline on ore grades.

In 2011, the world produced about 87 million ounces of gold.  If we apply some simple math: [Read more...]

Submitted by SD Contributor SRSrocco:

Costs are increasing faster than the price of commodities are rising.  Even though some copper miners are making decent profits, it is not enough to supply all the FUTURE CAPEX spending that these companies have in their pipelines.  We must remember, the so-called forecasted increase of global silver production is based on these scheduled base metal mines becoming commercial. [Read more...]

The nitwits on MSM and CNBC who believe that gold is in a bubble, fail to understand that a large percentage of its recent price move higher has been due to the increased costs in the mining industry — and not because of rampant speculation.

This reminds me of a famous quote from the movie Aliens… “DID IQ’S JUST DROP SHARPLY WHEN I WAS AWAY?”

If we look at the information and data provided in the body of this post, you will realize that the price of gold will have to head much higher just to cover increased mining costs.  Furthermore, you don’t have to believe me… the title of this post came from an article quoting the World Gold Council’s chief executive, Aram Shishmanian. [Read more...]

Submitted by SD Contributor SRSrocco:

The reason why I am so happy to own physical Gold & Silver, even though I know we will have paper volatility is due to the following chart below: [Read more...]

Submitted by SD Contributor SRSrocco:

People don’t realize there is a WAR going on in the GOLD-SILVER MARKET vs FIAT MONEY.  Psychology and Sentiment are the KEY in markets.  This also is true in war.  During WW2 the allies fooled the Germans into believing that they were going to invade France at the Pas De Calais instead of Normandy.  They created a complete fake army to convince the Germans that they would indeed attack at Pas De Calais.  The plan worked… Psychology beat the Germans as they wasted a large numbers of troops defending the wrong port.

Today, we have the same tactic taking place in the precious metal markets.  [Read more...]

Submitted by SD Contributor SRSrocco:

If we look at this 2008 chart of the DOW JONES, GLD & SLV we see that in the big decline, the Dow lost 35% in 6 months, the GLD dropped 14% and the SLV got clobbered in a waterfall of -45%.
If we compare this to 2012, we see a much different picture: [Read more...]

Submitted by SD Contributor SRSrocco

U.S Silver Corp just had their Q2 conference call and pre-released their results.  We now know what the break-even cost for U.S. Silver Corp is… it is more than $29.41 oz (the average price per kitco for Apr-Jun 2012).

Here is the their results for Q2 2011: [Read more...]

Submitted by SD Contributor SRSrocco

North Dakota is producing oil at a record. However, it will come at a cost.

If oil production is to be LONG TERM, it has to increase in a linear fashion. North Dakota oil production fails this test of time.
Its huge exponential increase will be matched by an exponential decrease on the way down: [Read more...]

Submitted by SD Contributor SRSrocco

I am seeing some very interesting signs that seems to be INVISIBLE to the gold and silver mining companies.  They are SLEEPWALKING into a future with the idea that they can keep their business plans going on forever.

In the first 6 months of 2012, Barrick has updated their annual consumption of diesel to be approximately 5 million barrels.  This is 210 million gallons per year, or 105 million for 6 months.  Here is the following from their Q2 2012 Report:

105,000,000 mil gallons / 3,633,000 oz gold = 29.0 gals diesel per oz gold

So, in just one year, Barrick has increased its consumption of diesel per oz of gold 4.4 gallons of diesel per oz (or 18%), in just 6 fricken months.  How about dem apples?

NEW MINES COMING ONLINE MAY BE IN TROUBLE. [Read more...]