THE FRAGILE GOLD INDUSTRY: Gigantic Equipment, Massive Capital Expenditures & Rising Costs

THE FRAGILE GOLD INDUSTRY: Gigantic Equipment, Massive Capital Expenditures & Rising Costs:

The gold industry has been built on the leveraging of debt and energy. The days of using human and animal labor to produce the precious yellow metal are long gone. While some gold is still mined the old fashion way, the overwhelming majority is produced by using colossal-sized mining equipment, massive amounts of capital, energy, and materials. Thus, the global gold supply comes via a very complex industry with a lot of moving parts. When one of these critical parts are in short supply or removed, then the entire gold supply system disintegrates.

H/t reader Squodgy.

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Why Precious Metals Are The Better LONG-TERM Store Of Value Over Bitcoin

Full article here:

Why Precious Metals Are The Better LONG-TERM Store Of Value Over Bitcoin:

Many precious metals investors are starting to question whether gold and silver are still the best store of wealth in the future.  The reason Alternative Media community is starting to have doubts about their gold and silver investments is due to the rapidly rising value of the cryptocurrency market.  Also, a number of precious metals analysts have jumped ship and are now only supporting the cryptocurrencies as the next best thing since sliced bread.

While some precious metals analysts now believe that Bitcoin and cryptocurrencies are the better assets to own in the future rather than gold and silver, I do not belong to that group or mindset.  I differ from these analysts based upon my energy analysis.  Unfortunately, these analysts that promote cryptocurrencies as the “New” digital assets of the future, are ignorant about the Falling EROI – Energy Returned On Investment, or are clueless to the dire energy predicament the world is facing.

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Russia stockpiles gold in continued push away from US dollar

Russia stockpiles gold in continued push away from US dollar:

The Central Bank of Russia (CBR) has more than doubled the pace of gold purchases over the past decade, adding more than 1,250 tons to its gold reserves according to World Gold Council data.

In the second quarter alone, it accounted for 38 percent of all gold purchased by central banks. The gold rush has allowed the CBR to continue piling its reserves while abstaining from purchases of foreign currency (particularly, the US dollar) for more than two years.

“The sixth largest gold reserves in the world, they constitute 17 percent of the nation’s wealth,” said the report. It added that if buying continues at a similar pace, the full year increase in 2017 “could closely match” the 200 tons purchased annually in 2015 and 2016.

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Tom Cloud’s Precious Metals Investing & Updates (September 27, 2017 – Video)

H/t reader squodgy:

“Now this is a natural and logical development.

Up to now the value of Bitcoin etc has never made sense to me, mainly because of its ethereal unbacked nature.

Backing these with precious metals gives them legitimacy.”

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“You’re Going To See A Rush For Gold” – Katusa Warns De-Dollarization Is Accelerating

“You’re Going To See A Rush For Gold” – Katusa Warns De-Dollarization Is Accelerating:

With China and Russia working together to de-dollarize the U.S. dollar starting with oil… you’re going to start seeing a massive unwind of these U.S. dollars in the emerging markets… you’re going to see a massive rush for gold.”

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Gold Tumbles Most Since July (As Bitcoin Bounces)

Gold Tumbles Most Since July (As Bitcoin Bounces):

Gold is down over 1% this morning, extending recent weakness to 3-week lows on the basis that the world didn’t end (and the debt ceiling was extended) we presume. Notably, both USDJPY and Bitcoin are mirroring the precious metal’s move…

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Suddenly, “De-Dollarization” Is A Thing

Suddenly, “De-Dollarization” Is A Thing:

For what seems like decades, other countries have been tiptoeing away from their dependence on the US dollar.

China, Russia, and India have cut deals in which they agree to accept each others’ currencies for bi-lateral trade while Europe, obviously, designed the euro to be a reserve asset and international medium of exchange.

These were challenges to the dollar’s dominance, but they weren’t mortal threats.

What’s happening lately, however, is a lot more serious.

It even has an ominous-sounding name: de-dollarization. Here’s an excerpt from a much longer article by “strategic risk consultant” F. William Engdahl:

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Jim Rickards: The “Golden Solution” To America’s Debt Crisis

The Golden Solution To America’s Debt Crisis:

Right now, the United States is officially $20 trillion in debt. Over half of that $20 trillion was added over the past decade.

And it looks like annual deficits will be at the trillion dollar level sooner than later when projected spending is factored in.

Basically, the United States is going broke.

I don’t say that to be hyperbolic. I’m not looking to scare people or attract attention to myself. It’s just an honest assessment, based on the numbers.

Now, a $20 trillion debt would be fine if we had a $50 trillion economy.

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Former UBS Trader Arrested, Charged With Rigging Gold Prices

Former UBS Trader Arrested, Charged With Rigging Gold Prices:

Three years after we first identified the former head of UBS’s gold desk in Zurich as someone directly implicated in the rigging of precious metals prices, Bloomberg reports that Andre Flotron, a Swiss resident, was arrested while visiting the U.S., according to people familiar with the matter.

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“Dear President Trump: America Is In For A Rude Awakening In January”

Continue to prepare for the (planned) greatest financial/economic collapse in world history.

“Dear President Trump: America Is In For A Rude Awakening In January”:

Dear President Trump,

Over the last couple of years I’ve been all over TV… from Fox News to CNBC, CNN and Bloomberg. I’ve been telling our fellow Americans that the financial global elite was planning to issue their own globalist currency called special drawing rights, or SDRs.

And that those elites would use this new currency to replace the U.S. dollar as the global reserve currency.

I’ve even written about this extensively in my best-selling booksThe Road to Ruin and The New Case for Gold.

I’m sure some people in the mainstream media thought I was out of line — but the United Nations and the International Monetary Fund (IMF) have both confirmed this plan to replace the U.S. dollar is real. I’ve made this warning many times, but it seems to be falling on deaf ears. That’s why I’m writing directly to you.

Here’s the proof that the U.S. dollar is under attack, right in front of our eyes:

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Pepe Escobar Exposes Real BRICS Bombshell: Putin’s “Fair Multipolar World” Where Oil Trade Bypasses The Dollar

Escobar Exposes Real BRICS Bombshell: Putin’s “Fair Multipolar World” Where Oil Trade Bypasses The Dollar:

Authored by Pepe Escobar via The Asia Times,

Putin reveals ‘fair multipolar world’ concept in which oil contracts could bypass the US dollar and be traded with oil, yuan and gold…

The annual BRICS summit in Xiamen – where President Xi Jinping was once mayor – could not intervene in a more incandescent geopolitical context.

Once again, it’s essential to keep in mind that the current core of BRICS is “RC”; the Russia-China strategic partnership. So in the Korean peninsula chessboard, RC context – with both nations sharing borders with the DPRK – is primordial.

Beijing has imposed a definitive veto on war – of which the Pentagon is very much aware.

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German Central Bank Completes Repatriation Of $28 Billion In Gold Three Years Ahead Of Schedule

All the repatriated gold is probably destined to be stolen during WW3.

German Central Bank Completes Repatriation Of $28 Billion In Gold Three Years Ahead Of Schedule:

This closes out the entire gold storage plan – around three years ahead of the time we were aiming for,” reported Carl-Ludwig Thiele, Member of the Bundesbank’s Executive Board.

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Steven Mnuchin Visits Fort Knox, Says “Gold Is Safe”

And would a former Goldman Sachs partner and George Soros employee ever lie?

Mnuchin Visits Fort Knox, Says “Gold Is Safe”

Treasury Secretary Steven Mnuchin had a busy day today: shortly after warning once again that a US debt ceiling deal has to be done by late September or else the country would run out of cash and suffer a technical default, roughly around the time he hinted that Trump may keep carried interest tax breaks for some firms that create jobs (while eliminating it for hedge fund managers), the former hedge fund manager and Hollywood producer paid a rare official visit to Fort Knox to check out the nation’s gold stash on Monday, while – as Bloomberg put it – keeping an open mind for future film projects.

“I assume the gold is still there,” Mnuchin told an audience in Louisville, Kentucky some 40 miles north of the biggest U.S. Bullion Depository (except of course for the foreign gold stash at the NY Fed). “It would really be quite a movie if we walked in and there was no gold.” It’s unclear if Mnuchin was envisioning a comedy or a drama.

After the visit, Mnuchin who was the first US Treasury Secretary to visit Fort Knox in nearly 70 years, playfullyreassured Americans the treasure was still secure.

“Glad gold is safe!” he wrote in a post on Twitter.

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