CONSPIRACY vs FACT: How Much Gold Is In The World??

There still seems to be some doubt in many investors minds on how much gold there is in the world.  I continue to receive emails from individuals who read articles stating that the amount of gold in the world is much greater than the official estimate.  Recently, I have received a spike of emails questioning the amount of gold in the world due to all these supposed “SECRET GOLD STASHES.”

Due to this, I decided to write an article to set the record straight… once and for all.  I actually wrote about this in a previous article early last year.  However, new information as well as additional data should help provide more FACTS vs the LOUSY CONSPIRACIES.

Before I provide this information, I would like to say the following… I mean no ill will or disrespect for analysts that I disagree with.  That being said, I find it quite frustrating when individuals are being misled due to faulty or incorrect information put out by these analysts.  Some analysts even state their “Conspiracy Theories” are not conspiracies, but rather…. FACTS.  This is even more erroneous than providing a faulty conspiracy.

For example, some precious metals analysts suggest the Fed and Central Banks can push the price of gold anywhere they see fit.  This is totally false.  There is some method to their madness.  This chart, republished from a previous article, shows the gold market price versus the cost of production from the top two gold miners (Barrick & Newmont) 2000-2012:

From 2000 to 2012, the total production cost for these top two gold miners increased from $243 an ounce to $1,386.  Thus, their cost of production in 2012 jumped 5.7 times higher than it was in 2000.  Interestingly, the gold market price increased 6 times from $279 in 2000 to $1,669 in 2012.  Thus, the overwhelming increase in the market price of gold was a result due to a much higher gold production cost.

Moreover, we can see that the production cost of gold was $1,116 in 2015 versus a market price of $1,160.  Which means, the gold market price in 2015 was approximately 4% higher than the cost of production from these two top miners.  The Fed and Central Banks cannot push the price of gold down too far below its cost of production, or SAVVY TRADERS will come in with both hands and buy up as much as they could.  Smart traders understand this cost of production-market price relationship.

Okay, let’s get back to the notion of all this SECRET GOLD being hid in the world.  A few years ago, Antal Fekete and Karen Hurdes did an interview where Karen spoke about acquiring all this hidden gold in Hawaii and using it to back the U.S. Dollar.  I have a great deal of respect for Antal Fekete, but for him to be sitting next to Karen as she spoke about this… makes me wonder how much he regretted it later on.

Regardless, for being a very bright individual, Karen Hudes is guilty of not fact checking her assumption that there is 170,000 metric tons (mt) of gold hidden to be used to back the Dollar.  I came across an excellent article titled, Karen Hudes & Wolfgang Struck Using Myths To Muddle Global Financial Reset:

There are multiple parties that have been using the fabled Marcos Gold, Yamashita Treasures, and bogus Maharlika land titles for extracting “membership and processing fees” from unwitting victims.

As of late, personalities like Karen Hudes and Wolfgang Struck, both claiming to have worked in the World Bank, and UBS, respectively are advertising their collective efforts to cause a global reset through the “Global Debt Facility”.

The problem with what these two self-confessed experts on global finance is that they are supporting their claims with spurious historical data, some even strayed too far from alternative accounts now beginning to surface here in the Philippines.

There’s a lot of good reading there as well as documented proof that many of the claims made by Karen Hudes are completely unfounded.  I don’t want to waste too much time on the specifics as the article does an excellent job.  Those with doubts, please take the time to read that article.

Then we have the work of Bix Weir at Road To Roota.  While I agree with Bix that the value of gold and silver will rise in the future, we are world’s apart on the LOGIC and FACTS.  Bix provides his thoughts on the amount of gold in the world in his section of his site called, GOLDEN SECRETS:

Fair Warning! What follows may scare the Dickens out of you gold bugs but will make silver bugs fall over themselves to swap even more of their gold for silver. Refresh yourself on the benefits of swapping gold for silver here: http://www.roadtoroota.com/public/136.cfm

The mainstream gold world wants you to believe that in the entire history of gold mining there has been just over 180,000 tons of gold mined from the ground. On top of that, with all our latest seismic and exploration technology, we have only found about 100,000 tons of underground gold reserves that could be economically mined in the future. That is what “they” want you to believe but…

THIS IS A BOLD FACED LIE!

Don’t get me wrong…I’m a gigantic gold buff but we need to understand the truth to ever reach a point where gold can take it’s rightful place in our corrupt monetary system….

WHAT THE PUBLIC KNOWS

There are two widely accepted gold statisticians that are followed religiously by the gold mining companies, central banks, governments and investment community:

Above Ground Gold: GFMS, Ltd. is the above ground gold market prognosticator and claims that the total amount of gold ever mined in the world is 180,000 tons (5.8B oz). Historically, this measure rises only as gold is pulled from the ground as reported by global gold mining companies around the world. Any “mystery gold” that suddenly appears on the market in ETF’s, on the LBMA, in the COMEX warehouses or in Government coffers is assumed to come from the unreported gold held by private individuals so that their historical figures never have to change.

In many of Bix’s interviews, he states that the above-ground gold figure was originally stated by Harry Oppenheimer in the 1960’s.  What Bix is suggesting here is that the gold market and mining industry is just taking one individual’s analysis for the basis of all the gold mined to date.  This is akin to providing ONE SOURCE when a student is writing his PhD dissertation.  If a student did that, the teacher would look at him straight in the face and say, “ARE YOU INSANE or STUPID??”

Unfortunately, some analysts do not do enough fact checking.  While they may provide additional supposed sources, they do so from the same area.  However, to provide accurate analysis, you must provide data and sources from many different areas.  That is what I try to do to make sense of it all.

For example, the 2017 GFMS Gold Survey stated that total historical gold mine production is estimated to be 187,500 mt, with a current value of $7.7 trillion.  I can assure you, GFMS did not pull that figure out of thin air, or take the word of one Harry Oppenheimer, more than 50 years ago.  Rather, the historical data on global gold mine production has been done by several sources over 100 years ago.

Here is a table from the U.S. Bureau of Mines Summarized Data On Gold Production, published in 1929:

In the U.S. Bureau of Mines report, there were plenty of older sources quoted.  Here are a few:

I would also imagine these sources above would likely quote even older sources.  So, as we can see here, there is AMPLE FACTUAL data going back 150 years (or more) that provides reasonable estimates of historic world gold production.  While the estimates are not EXACT figures, they can be relied upon as a good approximation.

I took the data from the U.S. Bureau of Mines 1929 report as well as more current data from the USGS – U.S. Geological Survey and GFMS to create the chart below of world gold production to date:

My figure of 173,000 mt only uses data from 1493-2016 and may be a bit different due to using USGS figures for certain years rather than GFMS data.  So, if we include gold produced prior to 1493, my 173,000 mt figure is quite close to GFMS estimate of 187,500 mt.

Now, the reason world gold production surged in the 1900’s was due to the advent of oil.  A barrel of oil equates to thousands of energy slaves.  Thus, as global oil production increased exponentially after 1900, so did gold production.  Matter-a-fact, 91% of all gold produced since 1493 came since 1900 and 70% of all that gold was produced since 1950.

Which brings us to this LOGICAL conclusion…. How can there be 1-2 million tons of gold in the world hidden in these supposed underground vaults if the world was only able to produce less than 200,000 mt???

Some people believe the ancient peoples, such as the ancient Roman Empire, produced a lot more gold than we give them credit.  Well, I have looked at some research that provided good estimations of ancient Roman gold production.  I provided this information in my previous gold article:

Estimated Ancient Roman Gold Production

According to information from the ancient book, Naturalis Historia by Pliny the Elder who died in 79 AD, annual gold production in the Roman Empire was estimated to be 9 metric tons per year (Production in Asturia, Callaecia, and Lusitania (all Iberian Peninsula) alone – Wikipedia)

That 9 metric ton figure is not for the entire Empire, so lets attribute 15 mt per year. If we assume the Ancient Romans produced 15 mt of gold for 500 years, that would equal 7,500 mt. I doubt they produced that much, but if they did.. it still won’t change the total 170,000 mt figure all that much.

Regardless, most of the ancient gold produced may be lost forever. Which is why GFMS states that 170,000 mt is a good ball park figure. Now, could they have missed some… sure. So, let’s add another 30,000 mt to get a total of 200,000 mt. That is still ten times less than the 2 million ton figure that Bix Weir and Karen Hudes claim.

Folks, it is just physically impossible for ancient peoples to produce the amount of gold that can be extracted by massive haul trucks that can move 400 mt of ore in a single trip.  These trucks average about 0.3 MPG.  I spoke with someone who worked at a large open-pit mine and he told me that these huge haul trucks go through five sets of tires a year.  Some of these tires are 13 feet high and cost $50,000+ a piece.

In addition, gold production wasn’t the only metal that increased exponentially with oil…. so did copper and silver (just to name a few):

Here we can see that all three metals (copper, silver and gold) increased exponentially along with oil.  Thus, if we assume the majority of most metals increased the most since 1900, especially since 1950, the majority of production of these metals have come more recently.  Using logic, we can plainly see that the official estimate of 187,500 mt of gold produced in the world is likely a very realistic figure.

Now, the reason I bring this up again is to try to inform individuals who have been mislead by LOUSY CONSPIRACY THEORIES, that while conspiracies do take place and are real, not everything is a conspiracy theory.

Bix Weir also mentions there is all this gold hidden in the Grand Canyon due to some 1909 article on the Arizona Gazette.  I suggest you all take a look at this article, Canyonitis: Seeing evidence of ancient Egypt in the Grand Canyon:

The original story goes that the team found an underground network of tunnels, high above the Colorado River, containing various ancient artefacts, statues and even mummies. A major discovery, no doubt about it. Impossible to slip off the archaeological radar. Still, the Smithsonian Institute will report it has no records on the subject. So what happened? To find out, there is only one guide: the article itself. Though the article was anonymous, it did identify some of the archaeologists involved: “under the direction of Prof. S. A. Jordan”, with Smithsonian-backed adventurer G. E. Kinkaid, who then relates his findings.

But the story gets weirder when the Smithsonian stated that it had no Kinkaid or Jordan on record. In one enquiry from 2000, the institution replied: “The Smithsonian Institution has received many questions about an article in the April 5, 1909 Phoenix Gazette about G. E. Kincaid and his discovery of a ‘great underground citadel’ in the Grand Canyon, hewn by an ancient race ‘of oriental origin, possibly from Egypt.’ […] The Smithsonian’s Department of Anthropology, has searched its files without finding any mention of a Professor Jordan, Kincaid, or a lost Egyptian civilization in Arizona. Nevertheless, the story continues to be repeated in books and articles.”

The article goes on to say that the truth is somewhere in between CONSPIRACY and FACT based on hidden Egyptian treasures… not a huge gold reserve.  That being said, there are these folks called “INDEPENDENT GEOLOGISTS.”  They can look at mineral and oil deposits and aren’t being paid by the corporations and the Elite to keep the supposed truth from Americans that there is all this HIDDEN GOLD and CAPPED OIL WELLS.

I still come across people who tell me that the United States has all these capped oil wells and when we want, we can just open up the spigot and let the oil flow.  I can tell you from talking to several oil geologists that NO ONE ever wants to shut in an oil well… only if there are problems with the well.  Why?  Because once a well is shut in, when it is opened later on, its production never returns to what it was before.  Shutting in an oil well normally destroys the productivity of the well in the future.  Again… the oil industry does not want to SHUT IN AN OIL WELL… only if it has to, and not because of waiting for higher prices in the future.

Furthermore, I have also spoken to some gold geologists, and they tell me that if there was all this hidden gold in the United States, we would have gone after it already.  Because, the economic model of resource extraction is that we go after the BEST FIRST, then mine the lower quality ore as time goes by.

Analysts who continue to talk about the hidden stashes of Hawaiian Gold, Yamashita’s Gold, the Nazi Gold and so on and so forth do so because people who don’t fact check are completely gullible.  Moreover, those analysts who focus on what I call, LOUSY CONSPIRACIES can make money peddling this to their unsuspecting subscribers.

Folks… LOUSY CONSPIRACIES can be financially rewarding for analysts as it is addictive to their readers.  And to keep the money flowing using this business model, more and more LOUSY CONSPIRACIES have to be promulgated.  It is a sad and viscous cycle.

I hope this clears up the notion of 1-2 million tons of gold floating around in the world.  Those who continue to believe it after they have read this article… you have my sympathies.  Why?  Because the Falling EROI – Energy Returned On Investment, not even known by those who peddle lousy conspiracy theories will push our modern society over the edge to collapse… a collapse we can never grow back out from.

Lastly, those analysts who promote a story that when the markets crash and the financial institutions are finally allowed to go bankrupt, that we can rebuild… are doing serious harm by misleading individuals.  When the collapse comes, we won’t be able to grow out of this one.  Rather, we transition to something more regional and local… at best.

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57 Comments on "CONSPIRACY vs FACT: How Much Gold Is In The World??"

  1. “How Much Gold Is In The World??”

    pretty soon the more relevant question will be, “how much food is in the world?” and the answer will be, “not enough.” then the question will be, “how many guns and how much ammunition is in the world?” and the answer will be, “a whole bunch.”

    • After that, the issue will be one offered by The Bison Prepper of “so many guns and so little ammo”, caused by the “spray & pray” mass-fire training given to US soldiers since the issuance of the M-16. GI’s don’t pay for ammo, nor do they have to carry it dozens of miles on their backs (Soldiers, not Specials/Rangers/Marines, rarely are full-weight pack mules for more than hundreds of meters) in the same way that US police officers don’t care how much a tank of gas in a Dodge Magnum 5.7L V-8 patrol car or BearCat/MRAP costs. “Free and Unlimited” is the price that dictates behavior. Helicopters with slings full of ammo are at the end of a radio, minutes away, when the Empire is operating correctly. Tanker trucks of fuel arrive twice a day to the motor pool. American AR-15-using-civilians have not many considered the implications of a weapon that can do 3-rounds-per-second semi-auto “mag dumps” during a “break contact drill” resulting in impressive noise but not often holes in enemy (hiding or over 200M away). We react at our lowest level of training, so why are folks training to waste masses of ammo while standing at the OK corral or aim precisely with plenty of time and snacks through a $1000+ glass optic at a paper target at a known distance from an engineered stable stand mostly with a resting pulse and not sweaty, next to cans of hundreds of rounds of ammo? A change to unavailable-expensive ammo, unavailable-expensive food, and unavailable-expensive fuel will result in behavior/social change.

      I appreciate that the AR has become a reliable weapon since the M-16A2 improvements. It’s possible to train to use it as a carefully-aimed low ammo-consumption weapon, but it will take considerable will to do so. A low-capacity magazine (5-rounds?) might help with this. Short-loading standard-capacity magazines (3 rounds?)during training could help remind users that ammo is dear. Police cars might be issued only 5 gallons per patrol shift.

      Disagree with gman on “a whole bunch”. How many cartridges does the average gun owner have? A few have lots, most have less than 1 ammo can (500 rounds), and will stop at the store on the way to the range. Uncle Sam has pretty good stocks of ammo, but they are highly centralized. It takes men/trucks/fuels to distribute that ammo to where it’s needed, and those things might limit distribution.

      “How much food is grown in your ZIP code?” -Matt Bracken.

  2. Johny Comelately | April 17, 2017 at 12:11 pm | Reply

    What about the conspiracy that Baricks laundered Yamashita’s gold into the market? Some of the large amount of gold mined in the 20th century could just be hidden gold brought into the official gold stock.

    Also, the mining figures go back to the 1400’s. There is a reference to roman times gold produceduction. But we have no pre-flood data.

    This is a fantastic article using the best facts available. But before the time of Jesus and. Certainly before the flood, we have no historical records. I guess some conspiracy theories will persist!

    • “There is a reference to roman times gold produceduction.”

      roman gold production would pale in comparison to egyptian, persian, chinese, mayan, incan, and aztec gold production. heh – in egypt there was considerably more gold than silver. not to mention that Mansa Musa dude.

      • gman,

        While the Egyptians may have produced more gold than the Romans, overall ancient gold production was still a fraction compared to recent times. So, I highly doubt the world produced more than 200,000 metric tons. Moreover, a lot of ancient gold is likely lost. In that vein, it really doesn’t amount to much in the whole scheme of things.

        steve

        • Unless you buy into the theory that Egyptian rulers were descendants of an alien race that had access to highly advanced technology. Nothing would surprise me anymore. We live in a world where the truth is suppressed at all costs.

          • AK,

            While anything is possible, the LOGIC that Aliens would come down here and assist humans with mining of gold, so we could use that to produce more resources to destroy the world… doesn’t pass the smell test with me.

            I don’t mention this much, but I believe we are now in RUNAWAY GLOBAL CLIMATE CHANGE. Within the next 5-10 years, all doubt of climate change will be gone as billions of people scramble just to survive. Unfortunately, there is nothing we can do about it as the EARTH’S AIR CONDITIONER… the ARCTIC ICE COVER is melting away at an exponential rate. Which will release METHANE at an exponential rate.

            I also find it quite hilarious that Clif High states we are going to experience a NEW MINI ICE AGE. How can the world experience a new MINI ICE AGE when the Arctic is heating up 5-6 times more than the rest of the planet. The only way to have a new MINI ICE AGE, is if the ice cover extends from the Arctic down….LOL. We are going to experience an ICE FREE ARCTIC within the next 1-3 years.. and then hold onto your hats as things really start to go out of control with the climate.

            So, there is nothing to do about it, which is why I don’t waste my time writing or debating it. So, the NONSENSE put forth by certain precious metals analysts is a complete WASTE OF TIME.

            steve

          • Marin Armstrong’s computer models at Armstrong Economics are all forecasting that we have already entered the 300 year solar down cycle. Armstrong Economics is the largest consulting firm on the planet and have the largest historical databases on the planet. This is the reason for the record cold and snow we have been seeing the last three years all across the northern parts of North America, Europe, etc. Ask any farmer that is up north. They are planting later and harvesting sooner. He actually moved Armstrong Economics from Conn. to Tampa because of this. The models are saying that farmers will start relocating to the south and businesses and populations will follow as records cold will hurt the northern economies as people will not go out and shop or eat only only go out for the essentials. In addition many scientist who follow sun cycles are saying the same thing about the sun cooling down. By the way the last cycle of cooler weather was back in the 1700s. Remember old George Washington crossing the ice covered river.

          • jj,

            Unfortunately, Martin Armstrong is completely FOS – FULL OF SHITE on this. Armstrong does not believe in PEAK OIL or CLIMATE CHANGE. Therefore, his Pi-cycle forecasting will become total BS within the decade.

            steve

          • DisappearingCulture | April 19, 2017 at 8:43 am |

            “He actually moved Armstrong Economics from Conn. to Tampa because of this.”

            Florida doesn’t have state sales tax, or commercial rent is lower, or the warmer climate means no slipping on ice, or golf can be played for more of the year. These are among more likely reasons for a move.

        • “overall ancient gold production was still a fraction compared to recent times.”

          … yeah, have to agree.

  3. Keeping away people from physical gold. By conspiracies, ETF’ s, derivatives and weird stories. Its all about trust in the current monetary system, ie rising stock markets and a fixed gold ‘price’. What a mess, pumping debt and printing currencies. Oh, and war.

  4. Obviously there is Hidden gold stashes that wealthy people have off the books but nothing that would change anything. If one were to inventory all this hidden gold it’d be drop in the bucket compared to global mining production. Nothing of significance but enough to make some people feel comfortable that’s all.

    • Private gold, especially coins (2x esp. fractional ounce gold coins), is a possible circulating currency (and store of real+portable value), where central bank and megabank owned gold is unlikely to ever be used as money. The megagold holders keep their metal as large bars, useless as money for human-individual saving/transactions. We need gold coins that represent a week of hard work by a skilled individual, like a half-Sovereign or 10 francs (an eighth, tenth, or twentieth ounce, or 5 gram bar). The Banks will issue paper alleged to be backed by their bars, but are backed by their ability to circulate the paper, violence, and lies. Fun ahead for people and currencies!

  5. pennies onthedollar | April 17, 2017 at 2:58 pm | Reply

    Hey Chief any suggestions on a good location to relocate to for the long run? Would be reassessing at landing on the first ledge after the big cliff.

  6. Bix did a recent release called Secret Silver. I find very little if anything wrong with it, and wish I’d gotten to that first, but I have my own mountain range of info to plow through. But regarding the purported Grand Canyon gold, I remember he said even the President isn’t allowed down there to see it. At that point it lost most credibility. There may be some gold in the Grand Canyon strata. Now, to close with two points 1) people can watch Silver Investor and Silver Market News Online later this week for a release from me about a major mining figure from the California gold rush, Comstock Lode and later strikes, and his connections to slamming silver money. Over 200 illustrations and 2) On the matter of $2 per ounce silver and associated items, this will be addressed in a follow up with Crush the Street.

    • DisappearingCulture | April 18, 2017 at 6:01 am | Reply

      “1) people can watch Silver Investor and Silver Market News Online later this week for a release from me about a major mining figure from the California gold rush, Comstock Lode and later strikes, and his connections to slamming silver….”

      Who is the “his” referring to in the phrase above…Bix?

      I’m a casual reader; don’t have much time to delve in depth into the writings [or rantings] of bloggers and their credibility, or lack thereof.

  7. Hey Steve, How about doing research on how much silver is stockpiled globally and available for use. Since 2006,over a 10 year stretch, the Silver Institute says that silver demand has outdone silver supply by about 1.2 billion ounces (https://www.silverinstitute.org/site/supply-demand/). That means that 1.2 billion ounces had to be supplied from global silver stockpiles. Silver is never going to explode as long as the supply deficit is supplemented by silver stockpile inventories. As soon as these stockpiles are depleted and there is no silver to supply from global stockpiles…then the price will be difficult to manipulate. I have read many times the the US silver stockpiles which was over 4 billion oz. at one time are now all gone. Where is this silver coming from and how many ounces do they have to use to balance out the continual yearly shortage? Lot’s of rumors about JP Morgan stockpiling/hording about 500 mil. oz. If true, are these ounces reflected in the supply and demand yearly charting of the Silver Institute? Thanks

  8. Love ya Steve but pulling this article out every year seems a little desperate. And if you are going to quote my work please don’t MISquote it. I don’t reference the 1909 article from the Arizona Gazette but rather the 1912 article on the front page of the New York Times reporting, in detail, that “billions of ounces” of gold have been found in the Grand Canyon and more “billions of ounces” in the silt on the banks of a tributary. Also, if you actually did consider facts to be important you wouldn’t blow off the research of Peggy and Sterling Seagrave who have run circles around you as far as discovering the FACTS behind Yamashta’s Gold. I have 3 CD’s of government documents and testimony to the validity of Yamashta’s gold so please don’t mislead your readers further. Bix

    • Diogenes Shrugged | April 17, 2017 at 7:45 pm | Reply

      Bix: Can you tell me which strata in the Grand Canyon are reported to contain gold? Also, can you tell me roughly which part of the Grand Canyon (e.g. ten miles upstream of the Bright Angel trail)? For reasons too numerous to list here, I strongly suspect mining the Grand Canyon would present insurmountable challenges. Thanks.

      • Yes, early attempts at mining caused a massive avalanche over the main mining seam. I have not ascertained the exact location (yet) but it is within one of the many “no go” zones guarded by the military in the Grand Canyon. An associate was taken there in the 1960’s and confirms that there is a huge military base within the Canyon. I’m writing a book on the subject that should be released in a few months. Bix

        • DisappearingCulture | April 18, 2017 at 6:14 am | Reply

          “An associate was taken there in the 1960’s and confirms that there is a huge military base within the Canyon.”

          As one with a degree geology, and having that perspective, I find it difficult to believe there is a military base within the grand canyon, particularly a huge one. Show me something, anything, that would confirm this. Maybe aerial or satellite imagery? People have come forward coming from known military bases claiming they have seen or worked on UFOs. Haven’t heard anyone saying they worked on a secret military base in the grand canyon.

          One can claim the government isn’t allowing such images to be seen by the public, but that is a conspiracy stretch. Not all aircraft or satellites are controlled by the government. And while I don’t search the internet for government coverups and conspiracies, this is the first time I have heard of a military installation in the grand canyon.
          I’ll add that to many other interesting conjectures I have heard on the internet.

    • Bix Weir,

      I appreciate you taking time out of your busy day to respond here personally. That means a lot. However, there’s much BIGGER FISH TO FRY than wasting time discussing what I call SUPERFLUOUS MATERIAL.

      We are heading for serious trouble with ENERGY and there isn’t much we can do about it. Thus, all that supposed gold in the Grand Canyon will likely stay there (if it’s there) as the populations of the world try to deal with collapsing economic activity.

      Instead of you and I playing TIT for TAT about CONSPIRACY THEORY NONSENSE in the future, we will likely be spending time just trying to survive. So, in the VEIN…. let’s see how things unfold over the next 5-10 years.

      steve

  9. This is a good analysis, Steve. I heard Bix giving that Grand Canyon spiel and it sounded like a fairy tale to me. I live in AZ and have been up and down the Canyon. There is zero evidence of ancient foreign cultures ever visiting Arizona. Gold is rare, it’s selling at near the cost of production, and probably less than 2% of Americans own any. I’m a buyer.

    • DisappearingCulture | April 18, 2017 at 6:19 am | Reply

      Tom,

      Thanks for your post.

      “I live in AZ and have been up and down the Canyon. There is zero evidence of ancient foreign cultures ever visiting Arizona.”

      Have you seen ANYTHING or heard ANYTHING about a secret military base there? I’ll trust your “boots on the ground” perspective over a conspiracy perspective.

  10. Great Article Steve but I don’t think you can close the case without dealing with gold, both historical and maybe modern unreported, from the far east and south america.

    I would also like to second James Erb’s request for a similar analysis of world silver especially in light of one of your recent articles that identified, by implication, the movement of large amounts of silver but without attribution or market recognition.

    One of the important assumptions underlying price theory and the laws of supply & demand is that the market is made up of “fully informed buyers and sellers”. Your work is very important because of your unbiased perspective and presentation of facts regarding gold, silver, and energy. But I have got to say, your patience and persistence is amazing and commendable given the never ending stream of PM hucksters and weekly pronouncements of “new, cheap and easy” energy sources.

    Thanks for all of your hard work. It does make a difference.

    • SteveW,

      Yes, there is a certain amount of “Unreported & Unaccounted Gold” in the world. However, this is not all that much in the whole scheme of things. With modern technology, and a great deal of energy, the world produced 3,222 metric tons of gold in 2016. This was 103.5 million oz (Moz). During the peak year during the California Gold rush in 1852, 4 Moz was produced. This was one of the major gold finds in the world. There wasn’t too many gold finds like the California Gold Rush. There just haven’t been that many gold finds as large as the California Gold Rush.

      In the 40 year Peak Period of the California Gold Rush, about 55 Moz were produced. Again, that was over a 40 year period. This was about half of the gold produced in 2016… in one year.

      I am not saying there could be more gold in the world that we don’t know about, but to say there is 1-2 million tons goes well beyond anything that is physically possible. If there were 100 California Gold Rushes we didn’t know about that would be another 5.5 billion oz or another 160,000 metric tons. So, that would be 350,000 metric tons, but as I have mentioned, there were only a handful of California Gold Rushes in the world. But, if there were 100 more than we knew about, it still only adds up to a third of 1 million tons.

      There just wasn’t many easy surface gold mines in the world. All the world’s modern Gold Rushes during the 1800’s only accounted for 11,600 tons during that century. So, again… if we look at the data, it is just impossible for the world to produce more than 200,000-250,000 mt of gold.

      steve

  11. Most of his report seems true, except for the case of gold in the Grand Canyon area.
    Bix may be correct for the following facts: One, upon through investigation the Smithsonian institute is one of the most evil organizations ever in the history of the world. Two, access to the Grand Canyon area is restricted and no one is allowed access; however, it is probable that the high ranking officials or deep state characters would be granted access. This does not prove or disprove gold deposits, but something of high value is there.

  12. The amount of physical gold is huge but limited. However, the amount ofor paper gold is infinite. A small amount of real gold is rehypothicated over and over. It’s paper gold that is sold short by bankers to depress the price. Also, the central banks have lots of paper gold now that they have leased out the real thing. Who needs real gold when you have paper gold?

  13. Bix
    if the US gov has an untold 100,000’s of thousands of tonnes of gold, why didn’t Nixon load a couple containers full and shove them up DeGaulles arse? Seriously, so much was made of the French demanding the gold and the US defaulting on its obligations. The US could have smiled and delivered. I mean, what is 2500 tonnes to settle a debt when you have 1,000 times that amount.
    Why have the petrodollar? The US could have just bought Saudi Arabia for 10,000 tonnes of gold. Leaves 1,990,000 tonnes. Like me counting pennies against the Feds printing press.
    How can “we” see what’s on the 3 cd’s of gov docs you have in your possession? Documented proof would be nice. China/Russia would probably pay you a few million for the info also. I mean, why buy gold when there’s so much in the Grand Canyon/Hawaiian caverns that the US has a never ending supply?

    • “if the US gov has an untold 100,000’s of thousands of tonnes of gold”

      indeed, especially before that modern iteration of fiat debt currency the federal reserve dollar, if anyone had that much gold why would they hide it? if anything they would have flaunted it.

  14. For those looking to AWAKEN to the truth about all the secret gold read this report from the Office of Navy Intelligence (ONI)…

    https://www.scribd.com/doc/9442970/Collateral-Damage-U-S-Covert-Operations-and-the-Terrorist-Attacks-on-September-11-2001-28062008

  15. Why Dr Fekete associated himself with Hudes I don’t know. Even Steve,
    keep away from the ‘lizard people’ and starship stories, not worth bringing them in for discussions of any sort – not naming them anyways, just ‘it has been suggested by some…’

  16. Has anybody mentioned that we have the largest prison population in the world because we have the best energy and the best return on our investment for energy. We can afford to put all those people away because we have the best return on our investment. Once the oil disappears the prisoners will have to be released and fewer people will be sent to the big house because we will no longer be able to afford it. No more big brother. No more chipping people. No more CCTV. No more happy trigger finger cops with tasers and pepper sprays.

  17. Nice article!!! I love the facts mention. One more thing Steve you can also deduce the amount of gold (Au), silver (Ag) in nature (If an high concentrate asteroid had not crashed their) by just looking at the Periodic table.
    The heavier the chemical element the more energie it takes the universe (nature) to make them. That is why Hydrogen is by far the most plentiful element.
    So just check the periodic table of elements.
    ———————————————————–
    And one other thing for the peoples that want to dismiss all of the excact sciences like Chemistry, Biology, Physics, and Mathematics. Stating that they have to be completely changed and rewritten. In other words our best understanding of the natural world that we observe, These sciences that had given us modern computers, telecommunication, aero planes, combustion engines etc. If you want to dismiss these sciences don’t use the internet (achieved by humanity understanding of electromagnetism) to spread the lies that they are all completely wrong.

    Great article.

  18. Let’s see…what do I believe about how much gold there is in the world? Physical or paper? Just kidding. OK whatever the govt admits to holding as far as gold goes I believe they’d never tell the truth about that either. But they don’t really know. So it’s whichever day it is for them. Do they need to tell the tale of limited gold or do they need to spin the tale about unlimited gold? Either way there’s none backing their worth-less dollar so that’s my answer. It depends on the tale they’re trying to spin. And no matter what – they wouldn’t tell you or me anything about that. And what they would tell us shouldn’t be believed. We don’t even know how much the Russians or the Chinese who both have an affinity for gold have in their vaults other than that number is more than we have. Whatever that number of how much gold is there in the world? The one thing that IS certain is that the US no longer holds 8000+ tonnes of gold in Fort Knox and hasn’t for many years.They don’t care about owning any gold as long as they control the market for gold. And they do that through their ongoing paper gold fraud.

  19. I’m reminded of the old saying about a man on a raft in the middle of the ocean:
    Water, water every where, but not a drop to drink!

  20. I think we should focus on two fact 1 “USA close the gold window in 1971!”
    Second “Why the price of gold could break 500 in year 2006?” Simple is the best! Don’t distract buy some uncertain news.

  21. The other issue that many don’t know is that about 250 mt of gold are being consumed by industrial applications, electric contacts (some of which will be recycled), in satellites, glass coatings and other applications where the gold is lost for good. IMHO that makes the 180k to 200k of above ground fizzical aurum quite a credible UPPER best guesstimate. Great work Steve, and also thanks to gman for his daily “Geers, MAN”.

  22. Steve,

    Thank you for this article. This is exactly what I love about your work – facts, clear sources, concisely put forth for everyone with a brain to understand.

    It’s refreshing to read an article like this. The mainstream media AND the alternative media are full of nonsense and propaganda, all geared to one thing and one thing only – to grab the fools’ money.

    I wish there were a thousand Steves publishing a thousand posts like this every day to outbalance the BS produced by the many thousand “analysts” and “experts”. The internet really let them loose…

    Peter

  23. I’m loving this. Bix, Steve and Charles are some of the brightest minds in the industry hashing it out. All come from completely different perspectives and in my opinion each of them make some very real, valid points. In the end none of this changes anything about Gold and Silver being a necessary component of every investor’s portfolio.

  24. This is the first time i’ve commented here but it’s great to see some of the commentors and their thoughts. I try to only use personal experience and logic to build my world view so i will need a lot more evidence to believe that there are large amounts of hidden gold anywhere.

    Perhaps somebody here can comment on a possible new method of leaching gold from ore using ammonia that is supposedly faster and cheaper than cyanide. If it is true what do you think the impact on the gold price and the miners will be?

    • Diogenes Shrugged | April 19, 2017 at 12:44 pm | Reply

      Not ammonia, but ammonium thiocyanate, and it is not “new.” As I recall, the insurmountable problem is recovering gold from pregnant solution. “Faster and cheaper” means little when existing operations are already set up for cyanide. Also, cyanide and thiocyanate are only useful for microscopic gold (e.g. Carlin trend), not placer or vein deposits containing visible gold.

  25. have my own conspiracy theory about the hidden gold in the Grand Canyon and chocolate mountain. This tale was created by JP Morgan and the other robber barons to get Woodrow Wilson to accept that the Federal Reserve should be created.

  26. If Steve is right about energy EROI, and Bix is right about gold reserves, then at some point the govt will release location of gold just to get it on books giving human labor a % for mining the stuff.

    My first and only investment recommendation: mules, shovels, and water canteens.

    • PS, If above doesn’t work out, you can spade up a garden, drink the water, and eat the mule until harvest.

  27. The article is a useful contribution to the mini-debate on above ground gold as it reiterates and collates existing information in one place with references. The counter arguments from those who believe that stashes of gold many times the “known” stock seem to be pure fiat, themselves unbacked by any physical gold because it is conveniently hidden. It sounds a bit like Clif High’s Antarctic Aliens where the evidence is always out of sight and usualy concealed by convenient, alleged and coincident military activity.

    As for “Climate Change” and “Peak Oil”, this worries me. I am still trying to find and explanation for Steve’s assertion that as the price of oil falls this will reduce demand for oil. Obviously this cannot be the whole story, but what is the full story? I just do not understand it. I am OK with the EROI concept – and that is a very useful contribution to our understanding of the imminent dangers the planet is not only facing but experiencing already and it looks like a serious issue. Climate Change? Ah! Yes. If this refers to the CO2 baloney did you know that the atmospheric record shows that CO2 levels have net fallen from about 425ppm (1942) to about 405ppm today?

    • carefix,

      I plan on writing an article explaining the Thermodynamic Oil Collapse and its impact on the oil price. In a nutshell, our money comes from burning energy. Without energy, there would be very little economic activity. Back in the day, money (gold and silver) were stored economic energy, mostly from human and animal labor.

      So, if the quality of energy (NET ENERGY) declines, so does the amount of money to be spent in the market. It is really that simple. Furthermore, the notion that the market would BID UP the price of oil if supply falls, doesn’t take into account that there is less money to be spent because there is less NET ENERGY from a barrel of oil. The only reason the oil price shot up to $100 was zero interest rates and massive money printing.

      So, as the NET ENERGY in a barrel continues to decline, so is its VALUE to the market. Basically, the available energy is doing less and less every year. Why would you pay more for an older car that is wearing out???? You must think of the oil price the same way.

      As for CLIMATE CHANGE, I am not going to get into a debate on the issue. I have spent a lot of time looking at DATA that provides CLEAR EVIDENCE that we are now in the advanced stages of ABRUPT CLIMATE CHANGE. Forget about C02…that is yesterday’s news. Now its the massive amount of methane being released from the Arctic and Siberia.

      A few years ago, NASA’s CARVE PROJECT flew planes above the Arctic Ocean and recorded 100 kilometers of massive methane plumes coming from the Arctic Ocean. Which means, large portions of the Arctic Ocean are now behaving like Champagne. However, this is a nasty METHANE COCKTAIL. It’s no longer a CO2 issue, it’s now METHANE’s turn… and its a 100 times more of a bitch than C02.

      When the Arctic Ocean experiences its first BLUE OCEAN EVENT (ICE FREE), then the CLIMATE REALLY starts to unravel.

      That being said… CAREFIX, don’t believe anything I say. But, just stay alive for the next 5-10 years and you will experience FIRST HAND.

      steve

      • Diogenes Shrugged | April 19, 2017 at 1:34 pm | Reply

        The EPA shows atmospheric CH4 (methane) quadrupling in the last century from about 500 ppb to about 2000 ppb. That’s an increase of 1,500 ppb, or 1.5 ppm (pay close attention to my units). Atmospheric CO2 has gone from about 250 to 400 ppm during the same period, an increase of 150 ppm. If CH4 exerts 29 time the greenhouse effect of CO2 (per Wikipedia), then a 1.5 ppm rise in CH4 equates to a greenhouse effect of 44 ppm CO2. There is a real question as to whether CO2 exerts much of a greenhouse effect at all, especially in comparison with water vapor, so 1.5 ppm methane becoming a dangerous greenhouse gas is a red herring.

        https://www.epa.gov/climate-indicators/climate-change-indicators-atmospheric-concentrations-greenhouse-gases#

        Keep in mind that the reason coal and oil exist in the subsurface at all is because Earth used to have 20% CO2 in the atmosphere. (20% CO2 = 200,000 ppm.) It wasn’t all that much warmer back then than it is today.

        Also, there is speculation that chemtrails are affecting the climate. The AGW fans say chemtrails counter global warming by reflecting sunlight back into space, but Dane Wigginton says they’re warming the climate. Either way, they’re affecting climate and weather patterns sufficiently that any effects from CO2 and CH4 become indiscernible.

        • Diogenes Shrugged,

          I appreciate your input on climate change, but I am not going to get into a debate on it. My reply from here on out is going to be… LET’s WAIT AROUND FIVE YEARS AND THEN LET’S SEE HOW THINGS ARE DOING.

          steve

          • Diogenes Shrugged | April 20, 2017 at 12:04 pm |

            With all due respect to your wait-and-see approach, Trump appears to be getting flipped on the AGW issue as we speak. Assuming he does flip, five years from now will be too late. Regardless of whether the planet warms or cools, we’ll all have lost both national sovereignty and individual liberty, not to also mention permission to heat our homes. There is a lot at stake.

            I would argue that we’ve ALREADY waited several consecutive 5-year periods to see what’s happening to the climate. Earlier predictions for no more snow, melted ice caps and drowning coastal cities have clearly not come true. Instead, we argue over millimeter changes to sea levels. So I’ll predict here that five years from now, you’ll ask us again to wait another five years. Then we’ll debate it … unless we have to wait another five years yet again. It’s the perfect strategy for those on the wrong side of the issue.

            The temptation to offer “expert opinions” on topics well outside one’s training only increases with growing celebrity. As if being a famous doctor were an automatic qualification for speaking authoritatively on wine making, exoplanets or the price of tea in China. Climate change is irrelevant to the fundamental assertions of your blog, so I would suggest you avoid the topic entirely.

            Thanks for being responsive, and thanks for your thought provoking blog.

          • Diogenes Shrugged,

            Yes, I have stated that I would not debate the CLIMATE CHANGE topic on my blog. However, I will likely say a few more things about it as time goes by as the EVIDENCE becomes quite clear that we are now heading into ABRUPT RUNAWAY CLIMATE CHANGE.

            Yes, that means it is going EXPONENTIAL. F*CK GLOBAL WARMING… that is for sissy’s now.

            The DATA I look at is not from the TWO-BIT Liberal Scientists, but from Independent sources. Ironically, the MSM & Liberal Scientists are downplaying the ACTUAL EVIDENCE found in the field.

            Regardless… that is the last thing I am going to say about this. However, when the ARCTIC OCEAN becomes ICE FREE within the next 1-3 years… then watch as the JET STREAM & CLIMATE really start to go to SHITE….LOL. This is when we start to see more than a years worth of rain in a single day in an area. The fun has just begun

            steve

    • Steve,

      Thanks for your reply. I will go over it again tomorrow to see if I can get it. I am looking it on a micro-economic level and there seems to be some sort of mix of macro and micro here. I really do want to get your perspective on this because if it aint wrong it is a serious matter. I’m cool with the EROI perspective of course.

      The problem with the methane argument is the planet has cooled over the past 8,000 years by 1.5 to 3.0 degrees so it is difficult to see why the methane would plume now rather than when it was warmer. Also these greenhouse gasses cool the planet as they radiate more energy into space than non GHGs at a given temperature. Wait about a year and I think we will see a continuing decline in global temperatures as is already being seen in the North Atlantic.

  28. GOLD IN GRAND CANYON HA !??? … WHATS THE COST TO MINE THAT AND GET BULLDOZERS AND PLANTS BIULT DOWN IN THE CANYON LOLOLOLOL ..$2500 OZ BREAK EVEN OR $5000 ?

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