Gold Fever

http://thewealthwatchman.com/the-eastern-bloc-locks-down-remaining-gold-while-the-west-snoozes/

The Eastern Bloc Locks Down Remaining Gold, While the West Snoozes

June 3, 2015

Diminishing, Available Gold Supply

As another week just passed by, with mainstream “economists” and “media” chuckling at gold, laughing harder at silver, and just plain “keeling over” at the thought of stackers actually still buying those metals, a few noteworthy items went under the radar.  These stories are very pertinent both to stackers, as well as to the ongoing fight between the Eastern Bloc and the Western banksters.

Mainstream media did not make much noise on these items, hoping that you’ll simply take their advice, put your life savings into CD’s(handsomely rewarding you with a hefty 0ish %!), and stay on their “treadmill to nowhere”, in the rat race that is all but destroying what’s left of the heart and soul of our generation.

While the MSM would rather distract you by pointing to gold’s price, they’d really rather you forget the ominous headlines indicating that future gold supply is threatened…or that major countries are setting up the foundation for

South African Gold Collapse Continues

As usual though, when the MSM ignores a story, that’s usually an excellent indication that you should pay careful attention to it . So let’s take a look at some of these gold headlines, and what they mean to the larger, global financial tapestry.

First off, we all know that the South African gold producing industry has been in a long, steady fall from grace.  That’s no secret.  As you can see below, things have been deteriorating for South African gold mining for decades:

SA 1

That chart is stunning.  Here’s a follow-on factoid that will blow your mind: 

In the 1970’s, just 40 short years ago, South Africa produced roughly 80% of the earth’s gold…yet now it produces only 5%.

Yet while the collapse has been a rather drawn-out, lengthy affair, the current, desperate market-rigging has only made things there much worse. In fact, their efficiency and yields have now grown so horrifying, that folks are beginning to wonder aloud if South Africa will even have a future in the gold-mining space at all.  As Peter Major recently said:

“It used to be we were the only country that could make money on gold and the rest of the world couldn’t,” says Major. “That has turned around. Gold production here could be zero by 2020. And that means that employment on the gold mines could be zero by 2020.”

Astonishing.  While is it true that no country’s resources are inexhaustible, failure of their mining industry to do anything to address the chronic manipulation, as well as other poor planning strategies, have certainly helped to undercut a key pillar to their historical financial health.

“Watchman, this is all just ‘doom & glooming’! Gold supply is just fine everywhere else.”

Uh, actually friend, that’s not true.

For now that the first quarter’s mining figures from this major gold-producing nation have come out, we get this interesting headline:

 

Australian gold production falls in first quarter of 2015

 

Yes, it appears that even Australia’s production fell 7% in the first quarter of the year, coming in at 70 tonnes.

Remember folks, that while 70 tonnes of gold may sound like alot, the Shanghai gold exchange alone would burn through that 3 month mining total in about 10 days.

Now, to be fair, it’s true that oftentimes the first quarter will be a nation’s lowest, due to inclement weather, and other factors.  However, within the article was an important squib about another problem that’s plaguing their gold production.  See if this sounds familiar:

“March is usually the lowest quarter of the year anyhow, but overall both the grade and tonnage of ore treated was lower this quarter than for December…”

Hmm, now…where have we heard of this nagging problem of “declining ore grades” before?

Why, from SRSRocco, of course!  Steve has done a fabulous job of illustrating why silver and gold mines have had their troubles compounded.  This headline is further evidence that Steve’s work is right on the money, and well ahead of the rest of that industry’s reporting.

It hasn’t just been the falling prices that have decimated the miners’ earnings, but rather a plummeting price combined with plummeting grades of gold or silver.  It’s not often that we hear of this very serious cause for concern in the mainstream news, but as the days go by, we’re going to start hearing quite alot of others echo SRS’s work on the slow death of “easily accessible gold & silver”.

Oh! Just a reminder too, if you think it’s just China that needs and wants a stable, future supply of gold, take a look at this nifty chart:

SA 5

Show stopping, is it not?

In just 7 years, those two countries alone have locked down an unbelievable 15,000 tonnes of gold….that we know about!  Please also take note of how steeply the angle of ascent has has become, as the pace of their demand continues to increase.

Do you think that either of just those two countries will be satisfied with a smaller share of gold to buy in the future?

Neither do I.

That stunning picture illustrates most vividly why China isn’t about to take all these threats to their future gold supply lying down…

The East Moves to Lock Up Gold’s Future

I’ve long reminded our community that China is most happy to buy up distressed gold mines(which often wouldn’t be profitable without a much higher gold price).  Just this past week, it made the headlines that China’s Zijin Mining Group(already China’s largest coal producer) has made a move to acquire a large gold mining project from Barrick.

SA 8

This is the latest straw in the wind, that China isn’t just focused on acquiring today’s gold, but tomorrow’s gold as well.  For awhile now, China has been both the world’s largest buyer and producer of gold.  Yet, they’re smart enough to know that a gold mine is an asset that is constantly depreciating, and must be replaced.

“Whoopty do, Watchman!  It’s just China’s miners buying some mining projects.  Miners do that all the time!”

Yes, that’s true, but governments don’t.  Which is why that the news above must be read alongside news items like this one, to be given proper context:

China Creates Gold Investment Fund For Central Banks

 

Ya see?  Now we’re cookin, folks!

This is huge news, as this fund will be over $16 billion dollars, and will have over 60 member countries(more than even the number of AIIB founders).  Furthermore, it won’t just be used to establish future gold mining projects….but will also help other central banks acquire it.

Think carefully about that last line…this is most strange!

China isn’t merely content to hoover up all the present gold…

Nor is it merely content to dominate future gold supply…

It’s now establishing a powerful, financing vehicle to enable other central banks to hoover gold up as well!

The ramifications of that are enormous, and it begs a question that few others are asking. After all, it’s one thing for a country to buy gold for itself, but:

Why on earth would a country bend over backwards to enable so many other countries to buy gold as well?

Lemme ask this: is that the sort of behavior one would expect from someone whose end game is just to bolster their own currency, to join the banksters’ “SDR club”?  Or is something much more broad and nuanced taking place?

Ya see, the weird thing about gold(and silver) that people forget…is that it’s most useful for trade when it is broadly owned.  It’s very difficult to use it for trade if only a few trading powers even possess it(as occurred in the 20th century).  In order for gold to efficiently fulfill its purpose…..it must be owned by many parties. In fact, the wider the ownership, the better!

All this begs the question:

Is this fund’s establishment the newest smoking-gun evidence that a gold-trade settlement system is, in fact, being prepared right now?

I wonder…

Conclusion

Due to the ongoing market rigging in precious metals, we are continuing to slowly witness the likely advent of peak gold and silver.  Russia and China both know that future supply of gold isn’t a guarantee, and are moving in to secure whatever fresh supply can be had.

Not only that though, they’re now also making it a top priority to help as many other countries as possible, to acquire gold as well.

Nations wholly opposed to US hegemony, like Russia and China, not only continue to move in on whatever supply of gold is remaining, they’re taking aggressive steps to ensure they’ll own whatever future supply of gold will be left.  They are putting in whatever capital, deals, and infrastructure that’s  necessary to secure a continual supply of gold in the future.

Again, as I’ve asked before: why are they doing this?  What do they know?

While most in the West are asleep at the wheel, the Eastern Bloc continues to buy gold, even into the price drops.

No, especially into the price drops.  

They’ve known for years exactly who was behind the gold rigging scheme and how, and they’ve turned the rigging around on the riggers.  

They know quite well that gold isn’t just money, it is power, it is a weapon. They also know the “Great Game” between world powers cannot be played(much less be won) by he who has no gold…

Each day that old bar chart of Shanghai’s gold deliveries creeps 5 to 8 tonnes per day.  Each day, the amount of gold available to stackers gets just a little smaller.  Our critics can mock that fact all they like, but math is math, and the numbers don’t lie.

Stackers must remember that these nations aren’t just re-casting gold’s present, they’re taking radical steps to ensure that they dominate gold’s future.

The saddest part of all, is that not only do most Americans not know these facts, most would not wish to know.  As long as the Dow is kissing 18,000, their hope for retirement will cause them to push away any realities that might threaten that dream.

Little do they know though, that their lives have empowered very wicked financial forces for generations, and because of this, they don’t grasp the importance of the Eastern Bloc’s current gold-buying binge, nor do they understand why Chinese authorities(and its allies) are so keen to lock down most of the future supply.

If only they could be made to understand that the most serious wars of our time aren’t fought militarily, but financially. This stealth gold acquisition by Russia, China, and others is not merely a means to defend their currencies, but to weaponize them.

Tragically, most Americans will only grasp this concept after the most debilitating shots have already been fired…

Yuan Weapon

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