Sep 23

Gold Counterfeiting Goes Viral: 10 Tungsten-Filled Gold Bars Are Discovered In Manhattan (ZeroHedge, Sep 23, 2012):

A few days ago, our report on the discovery of a single 10 oz Tungsten-filled gold bar in Manhattan’s jewelry district promptly went viral, as it meant that a tungsten-based, gold-counterfeiting operation, previously isolated solely to the UK and Europe, had crossed the Atlantic. The good news was that the counterfeiting case was isolated to just one 10 oz bar. This morning, the NYPost reports that as had been expected, in the aftermath of the realization that the sanctity of the gold inventory on 47th Street just off Fifth Avenue has been polluted, and dealers promptly check the purity of their gold, at least ten more fake 10-ounce “gold bars” filled with Tungsten has been discovered.

The Post has learned as many as 10 fake gold bars — made up mostly of relatively worthless tungsten — were sold recently to unsuspecting dealers in Manhattan’s Midtown Diamond District.

The 10-oz. gold bars are hugely popular with Main Street investors, and it is not known how many of the fake gold bars were sold to dealers — or if any fake bars were purchased by the public.

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Sep 13

Gold Will Top $2,000 in Next Year: Barrick CEO (CNBC, Sep 11, 2012):

With more Federal Reserve stimulus coming and central banks around the world turning into buyers, gold prices have room to run higher, Barrick Gold CEO Jamie Sokalsky told CNBC’s “Squawk on the Street” on Tuesday.

The new CEO of the world’s largest precious metals miner is optimistic about the outlook for gold prices, saying, “Gold could definitely surpass previous highs and go above $2,000 and even higher in the next year.”) Barrick  has great leverage to higher gold prices, with every $100 increase in the price of gold adding an additional $500 million to earnings and cash flow, Sokalsky noted.

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Dec 02

gold

Dec. 1 (Bloomberg) — Barrick Gold Corp., the world’s largest gold producer, said it completed the elimination of its gold hedges, gaining full leverage to the price of the metal.

The change in the value of some gold hedges before they were eliminated will result in a $300 million charge against fourth-quarter earnings, Toronto-based Barrick said today in a statement.

Gold jumped to a record above $1,200 an ounce in New York today as declines in the dollar and higher commodity prices boosted investor demand for an inflation hedge. Barrick in September said it was eliminating fixed-price contracts to increase its bet that the metal will gain.

In the past two years, Barrick has eliminated a hedge position of 9.5 million ounces of gold at a weighted average price of $930 an ounce, by either settling fixed-price contracts or by converting them into floating contracts.

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Nov 12

Barrick Gold shuts hedge book as world gold supply runs out

Global gold production is in terminal decline despite record prices and Herculean efforts by mining companies to discover fresh sources of ore in remote spots, according to the world’s top producer Barrick Gold.

Pouring gold bullion - Barrick shuts hedge book as world gold supply runs out
Liquid gold: Gold is poured from the induction kiln Photo: JULIAN SIMMONDS

Aaron Regent, president of the Canadian gold giant, said that global output has been falling by roughly 1m ounces a year since the start of the decade. Total mine supply has dropped by 10pc as ore quality erodes, implying that the roaring bull market of the last eight years may have further to run.

“There is a strong case to be made that we are already at ‘peak gold’,” he told The Daily Telegraph at the RBC’s annual gold conference in London.

“Production peaked around 2000 and it has been in decline ever since, and we forecast that decline to continue. It is increasingly difficult to find ore,” he said.

Ore grades have fallen from around 12 grams per tonne in 1950 to nearer 3 grams in the US, Canada, and Australia. South Africa’s output has halved since peaking in 1970.

The supply crunch has helped push gold to an all-time high, reaching $1,118 an ounce at one stage yesterday. The key driver over recent days has been the move by India’s central bank to soak up half of the gold being sold by the International Monetary Fund. It is the latest sign that the rising powers of Asia and the commodity bloc are growing wary of Western paper money and debt.

China has quietly doubled holdings to 1,054 tonnes and is thought to be adding gradually on price dips, creating a market floor. Gold remains a tiny fraction of its $2.3 trillion in foreign reserves.

Gold exchange-traded funds (ETFs) – dubbed the “People’s Central Bank” – have accumulated 1,778 tonnes, making them the fifth biggest holder after the US, Germany, France, and Italy.

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