Month: June 2021

Seeking Alpha/Adam Hamilton/6-20-2021

“So, odds are great gold will soon bounce sharply higher as speculators’ kneejerk gold-futures purging quickly exhausts itself. Like Powell himself often warns, the dot plot has proven notoriously inaccurate at forecasting future federal-funds-rate levels. 2023 is still years away, and the FOMC lacks the courage to hike rates anyway if that drives major stock-market selloffs. That’s a serious risk with today’s bubble valuations!

And since that March 2020 stock panic, the Fed has frantically printed trillions of dollars of new money to stave off a depression-triggering serious stock bear. In only 15.0 months since the Fed’s balance sheet has mushroomed a staggering 84.4% or $3,640b! This profligate Fed has nearly doubled the US-dollar supply, which is why price inflation is soaring everywhere. That is really bullish for gold prices going forward.”

USAGOLD note: Last week’s downside reaction in the gold market was “ridiculous,” says Hamilton, while the monetary excesses of the Fed is “gold-rocket-fuel.” The article is lengthy but well worth the time spent – at the link above.

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CNBC/Jeff Cox/6-22-2021

‘Federal Reserve Chairman Jerome Powell acknowledged Tuesday that some inflation pressures are stronger and more persistent than he had anticipated, though still not on par with some of the worst episodes the U.S. has seen historically.”

USAGOLD note: Had the chairman said otherwise he would be obligated to entertain unpleasant options like higher rates, tapering, etc. While he would rather shuttle the 1970s off to the backburner, heavyweights in the private sector are not shy about raising its specter.

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When I visited South Africa in 1979, it was the world’s largest gold producer, mining some 1,000 tons a year.  Today South Africa is not even in the top 10 gold producing countries.

Between 2010 and 2018, the world’s gold production grew by 2.5%.  However, over the last two years, production has fallen by 4.78%.  Some analysts say this decline is because of the pandemic.

Yet, there is speculation that all the large, easy to find deposits have been found as major gold mining companies have cut their exploration budgets.

For more details on world gold production, see World Gold Production.

The post World gold production declines first appeared on CMI Gold & Silver.