THE COMING GOLD RUSH: There’s A Lot Less Gold In The World

The Western U.S. Dollar based monetary system is headed for a train wreck.  This isn’t a matter of IF, it’s a matter of WHEN.  Investors lulled to sleep by the low paper price of gold are losing out on the best buying opportunity of a lifetime.  The precious metals will be one of the best insurance policies to own when the U.S. Dollar finally catches on fire and burns down the entire system.

There are several gold theories circulating around the alternative media on how the global financial situation will play out going forward.  While it’s impossible to really know how events will turn out in the future, there are some theories that I can guarantee, WILL NOT TAKE PLACE.

I will not get in to the particulars in this article, but rather provide two charts and a bit of common sense that will destroy some of what I label as FAULTY GOLD CONSPIRACIES.

There’s this notion put forth by some very intelligent people that the world has a great deal more gold than stated by official sources stashed away, hidden in vaults around the world.  All we have to do is take this gold and back the U.S. Dollar…. and then everything will be OKAY.

I have read estimates from 500,000 to 1,000,000 metric tons (mt) of gold stored in different vaults throughout the world.  I find this claim simply astonishing as a bit of 3rd grade math would totally destroy this lousy conspiracy theory.  Let’s take a look at the next two charts:

World Gold Production 1493-2014 #2

CORRECTION:  This is the third and final chart update. 

According to the figures put out by the U.S. Bureau of Mines in their 1930 Summarized Gold Production data, the world produced 714 mt of gold from 1493-1600, 897 mt from 1600-1700, 1,906 mt from 1700-1800, increased significantly to 11,641 mt mt during the next century, and went completely exponential from 1900-2014 at a staggering 151,482 mt.  Thus, 91% of all the gold mined since 1493 came after 1900.

Some readers may think this information was manipulated by the so-called POWERS THAT BE.  However, if governments were manipulating gold production data prior to 1930, I would imagine they were INFLATING the figures, rather than underestimating them.  Why?  If you read over some of these older U.S. Bureau of Mines reports, you will see just how detailed and meticulous they were.

We must remember, gold was still the King Monetary Metal prior to 1930, and countries with high production saw it as bragging rights to share this data.  So, I believe the estimates of world gold production put forth by that report is very trustworthy… even though the figures may not be 100% accurate.

In addition, there just weren’t many places in the world that had a great deal of easy to find and extract gold before 1900.  It wasn’t until Americans expanded to the west of the country did we find a lot of gold and silver.  One such place and event was the Great California Gold Rush.

This following chart came from the article The Bakken Boom:  Modern Day Gold Rush, which compared peak production during the California Gold Rush to what would take place in North Dakota Bakken oil production:

California_Gold_Production

Gold production in California started in 1848 and peaked just four years later at 3.9 million ounces (Moz).  Production continued to decline, even when high-tech techniques of hydraulic mining using massive amounts of water to wash away mountain sides to get the gold.

The California Gold Rush from 1848 to 1888 yielded approximately 57 Moz of gold.  How much is this in metric tons?  It turns out to be 1,773 mt.  This was one of the biggest gold discoveries in the world at the time, but it only accounted for 15% of the total 11,614 mt of gold mined in the world in the 1800-1900 time period.

Folks, there just weren’t that many big gold discoveries in the world prior to the 1900’s.  Of course the huge gold discovery in the late 1800’s in South Africa was another, but again… these were few and far in between.

It wasn’t until oil was discovered in the late 1800’s were we able to seriously ramp up gold production.  Here is the breakdown since 1900:

1900-1960 = 47,242 mt

1960-2014 = 104,240 mt

In the first six decades, the world produced 47,242 mt of gold, but it more than doubled in the next 54 years to 104,240 mt.  I discussed this in a recent interview titled, “Mad Rush Out of Paper Assets Coming “The Data to Prove It!”  You can find this topic in PART 2 towards the last third of the interview.

The official sources such as GFMS state there were a total of 179,000 mt of gold mined in the world, with approximately 12,780 mt of gold mined before 1493.  I say this is pretty accurate because if we make a plot on a chart over the past 2,000 years and input world population, gold, silver, lead, copper and oil production, they will all look flat up until the 1700’s.  Yes, of course oil production did not come in the picture until the late 1800’s… but you will catch my drift here in a minute.

By the 1800’s world population, gold and silver production started to move up higher and it wasn’t until the 1900’s did ALL OF THEM GO EXPONENTIAL.  Why?  You can thank the exponential rise in oil production that impacted the same rate of increase in world population, gold, silver, lead and copper production.

So, don’t count on some group to magically save the system by taking the supposed 100,000’s mt of gold hidden in vaults around the world to back the soon to be worthless Dollar.  There’s a hell of a lot less gold in the world than we realize.

And….. when the Dollar finally does die, I would imagine there will even be a great deal less to buy.

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38 Comments on "THE COMING GOLD RUSH: There’s A Lot Less Gold In The World"

  1. 1904 mt for the 19th century included 1173 mt from The California Gold Rush from 1848 to 1888 ?

    it leads only 732 for the rest of the world and included all the US production from the end and the beginning of the 19th.

    I would say gold hoards from before 1900 are grossly underestimated. You also have to include gold production before 1500.

    I would not be surprised to the holdings would be 10 times higher to 20 000/30 000 tons.

    • RD,

      I actually made a bit of an error with the 1800-1900 data. check my other comment.

      steve

    • RD,

      I actually made an error with the data in the chart for the 1800-1900 time period. Sometimes I go over the data two or three times before publishing, but I was in a rush yesterday. I went back and found the correct information:

      1800-1850 = 38 Moz
      1850-1900 = 336 Moz
      1800-1900 = 374 Moz or 11,614 mt

      I don’t know how I inputted the data incorrectly, but there it is. So, you were right… the California Gold Rush produced approximately 1,773 mt during the 40 years (1848-1888) which turns out to be 15% of the world total of 11,614 mt in the 1800-1900 time period.

      GFMS believes approximately 12,700 mt of gold were mined prior to 1493, so that now gives us a total of 177,000 mt of gold mined to date.

      steve

  2. Please find this link : it gives an hoard of 10 000 mt of silver and about 1000 mt for gold in about 150 AD.

    http://en.wikipedia.org/wiki/Roman_metallurgy

    Some have been lost and sometimes still found nowadays but it has surely been melted many times from that period.

  3. Some days ago I wrote here that I thought that german politicians would do zero to get the german gold back and therefore I guessed, that the USA must have somehow the blessings of the Bundesbank to give it away, but why…..
    Jim Willie guesses, that the Bundesbank received a lot more gold back, than admitted.(https://www.youtube.com/watch?v=385ymxhVQEM ,min 40plus)

    What I want to say is, that we do not know reality. So we have to prepare ourselves for more than one possibility.
    I absolutely love to think with others out of the box and this Jim Willie idea is a perfect example. It would make sense, although I do not really believe it.

    Finally, let me say one word to the Karen H. idea, that there are mountains of gold.
    IF this would be true, then gold would not have been used as money.
    I go with Peter Stöferle – in his yearly “In gold we trust” he explains wonderfully, that just because that every year 1-3% (of the existing goldpile) gold is digged out of the ground – the inflation of money (=gold) is automatically little and so gold is ideal to use as money.
    IF all of a sudden a lot of gold would be there, the inflation would be high. This happened to Spain, when all of a sudden a lot of silver came from Potosi’s silvermountain in Bolivia to Spain.

    In this case Ben B. would be right and Centralbanks would hold gold for tradition. But Ben was never right. 😉

    • I would like to see your evidence for the Spanish inflation rate due to the Bolivian appropriations. The reason Spain ran into problems for their shortlived empire was because they had very little means of production and had to rely on other European nations for almost everthing, including their weaponry to fight them. They had to expropriate the western natives gold and silver to finance their sixteenth century empire.

    • It happened in spain because they stole it, otherwise it would have been much longer to get it and reimport in spain !

  4. ……….I buy silver. It costs more to produce an ounce of silver than what the present spot price is. Kind of a no brainer for poor folks. I gave up cable TV and red meat. Been spending that money on silver. Works for me.

  5. Steve,

    I’ve enjoyed your articles for a while now along with all the interesting comments they’ve inspired. Even Frank’s comments were amusing until you ran him off – LOL! The matter of massive hoards of gold being stored in places like Hawaii or the Philippines for humanity is one I’ve heard in several interviews.
    I believe Karen Hudes is the main source of this conspiracy and I wondered if you could reach out to her and arrange an interview to hash this whole issue out. I bet all of us who follow your website would enjoy the exchange and would lend credence to your assertion of actual gold production throughout the ages.
    I look forward to more articles on EROI, etc. in the near future.

    Thanks for the knowledge,

    Mark

    • Mark,

      Glad you find some of the information on the site interesting. I find it completely amazing how most precious metal folks DO NOT WANT to look at the ENERGY-EROI data. Owning precious metals is a good thing to do, but sitting with a bunch of gold and silver in a large city might not be a wise thing when things start to get rough after PEAK OIL.

      steve

    • If i was looking for hidden hoards itt would be in India.

  6. Steve,

    I have to agree with you. Even if there were a 25% margin of error, which would amount to a wildly optimistic margin of error, we would still be way under 200,000 mt.

    The application of oil-based machinery, technology and everything which goes with it in reality amounts to way more than the base arithmetic suggests. The synergy is truly gargantuan, as shown by your comparison of 5,000 years of production history vs. the 20th Century. This synergy, if you will, is very accurately demonstrated by the bar graph. The contrast is extraordinary, to put it mildly.

    I would make this assumption, borrowing your scholarly references to EROI:

    The amount of SPARE human / animal muscle power and the food-based fuel / energy needed to “power” the manual extraction of 1,000,000 mt of gold before the year 1500 simply did not exist.

    In the societies that existed before 1500 AD where the vast majority of labor and calories available went into simple survival, where the population growth was very tiny, there just wouldn’t have been the amount of excess energy / calories / muscle power – whatever you want to call it – to mine that much gold.

    It’s sort of like solar panels and windmills being the very tiny apex of the energy / technological pyramid. That’s were gold production is in an agricultural society. Generally only Kings had gold, and maybe only 1% of all people ever saw a gold coin in their lives. The rich had silver (maybe) and the peasants traded beans and squash.

    The production of that much gold, even with the energy and technology we have today would probably not be possible, ultimately.

    • “The application of oil-based machinery, technology and everything which goes with it in reality amounts to way more than the base arithmetic suggests. The synergy is truly gargantuan, as shown by your comparison of 5,000 years of production history vs. the 20th Century. This synergy, if you will, is very accurately demonstrated by the bar graph. The contrast is extraordinary, to put it mildly.”

      Oil leads to diesel and gasoline, and they lead to much more mining…including coal…and oil and coal lead to most of the electricity generation also used in mining & refining metals. As you say Rob, synergy.

    • Rob,

      Thanks for the comment and I totally agree with you.

      steve

      • Steve,

        Thanks for your response. The comments I made were not so much directed towards you, but towards the “uninitiated” readers. I know that you know all this stuff, as do many regular readers. I was just trying to put a little different angle on it.

        Thanks for your generosity and great work on this blog. I’ve never found one thing to complain about on your reports. They are uniquely enlightening.

        Rob

    • OutLookingIn | April 11, 2015 at 9:25 am |

      Rob, you are correct.

      Gold is the money of kings.
      Silver is the money of gentlemen.
      Barter is the money of peasants.
      Debt is the money of slaves.

      This why the official coinage of the Roman Empire was made of silver. Since the mining of sought after metals (copper, lead, tin) yielded silver as a by-product. Gold on the other hand, was mined purely for that – gold. Which had an historic ratio to that of silver of 1:16 That is, one ounce of gold per sixteen ounces of silver, as it occurs naturally in the earths crust.

      For some to state that there are a half million to one million tonnes of “mystery” gold bullion gold being held in hidden vaults is ludicrous! For this to be true, natures own gold to silver ratio would have to be drastically revised! Karen H. is one smart lady and worth listening to on many levels. However, on “mystery” gold bullion she fires a blank.

  7. It may be a shock, but the amount of refined gold in the world could be almost twice what is presently agreed upon. I read Dr. Joseph P. Farrell’s book “Covert Wars and Breakaway Civilizations” and there are statements made in recent history, by very important people, that should bring some skepticism and cause for deeper research. The Japanese Operation Golden Lily in World War Two and the bullion that was plundered from Asia has never been inserted into any claimed reserves. The statements made by General MacArthur and later in the British House of Lords about a “altruistic” group that wanted to save the European financial markets with what would be almost twice the amount of gold in the world. http://gizadeathstar.com/2013/05/that-gold-stuff-again/

    • jay,

      I have read many of these accounts of hidden gold. However, it still doesn’t seem to fit with the production data. We can claim as much gold is hidden or not included in official reserves as we want, but it still must JIVE with world production data.

      As I mentioned in the article, gold production did not increase until oil came on the market. Furthermore, of the 1 billion ounces of gold produced from 1493 to 1927 (data in the 1930 report), Asia only produced 11% of the total or 112 Moz.

      North America accounted for the number one ranking in the world at 28% at 281 Moz. There just wasn’t that much available gold to be mined to make reserves double of what they are today.

      steve

      • totally – it’s almost hilarious how people think that ‘hiding’ gold equals ‘creating’ gold. If it was hidden, IT HAS TO HAVE BEEN MINED. So for there to be a lot more gold, there would have to be a very, very large, secret (or just unknown) mining operation – and as your data shows, that would have to be in the 20th C OR it would be an operation that would vastly eclipse historical production levels.
        This is simple logic.
        Good Analysis.

      • That’s the problem : how can you be sure that asia produced so little gold ?

        I doubt that total gold produced would be 1 000 000 mt but it could be 200 000 or even 250 000 because gold mining in eastern world have been underestimated.

        All the numbers you have used for these articles are western if not exclusively US centric even if I agree that is geological most promising area for gold (and other minerals) at that time due to energy and technical mining extraction issues in asia.

        Lastly, I do believe this asian secret gold hoards in the WWII context have existed but their tonnage is probably less than 1/10th what is said by karen hudes or so.

      • The massive Yamashita gold stocks secreted away in the Philippines in 1944-45 were supposedly in the range of 200,000+ tons. The vast majority of this was from Chinese Asian families and Buddhist temple complexes. These two groups had been secreting gold away for about 5,000 years, periods when records just did not exist and if they did, they either did not survive or were kept incredibly secret.

        When the Imperial Japanese Army (IJA) and the Kempeitai (fascist Japan’s secret police) began extorting payments from the inhabitants of their conquered territories in the 1930s, they were amazed about how much gold they were obtaining. No one had any idea East Asia had so much gold stashed away.

        If as stated in Sterling and Peggy Segrave’s astounding book “Gold Warriors” their conjecture is correct–-that the USG, Marcos, and the Japanese gov’t have secretly repatriated about 200,000 tons of the hidden IJA gold since the 1940s–-than if it is strictly priced as a commodity the present worth of 32,000 tons of central bank gold, and the 138,000 tons of other gold (computers, jewelry, teeth, coin, etc.) is inflated by about twice as much as it should be.

        Most of the gold found from the Yamashita stocks has wound up in bank vaults around the world, with a lot of the Marcos gold being shipped to Switzerland before 1986. God only knows how the 200K tons are spread out around the world’s banking centers. But no one’s talking about any of it. Read “Gold Warriors” and you’ll discover greed untold from major Western banks.

        Finally, “for your examination,” one unexplored reason behind China’s gold buying spree since the late 1990s is that they would like their stolen property (the 5,000 years of collected gold forcibly extracted from them by the IJA) returned to them. And if they reclaim their gold by selling soon-to-be worthless US Treasuries, so much the sucker for falling for paper “worth” instead of something much more barbarous and tactile.

        • Poshboy,

          Do you have any idea how much 200,000 metric tons are? That’s 6.4 billion oz. Do you know how hard it was to mine gold back during historic times?? According to some pretty good sources, the Romans only mined and acquired 1,000 metric tons of gold at the height of their empire… which was 32.1 million oz.

          Do you actually believe the Chinese mined or acquired 200 times more than the what the Romans did during their Empire?

          I wouldn’t be surprised if the Chinese mined 1-5,000 metric tons in ancient times, but I highly doubt they were able to mine 6.4 billion oz. There is just no possible way.

          steve

    • “The statements made by General MacArthur and later in the British House of Lords about a “altruistic” group that wanted to save the European financial markets with what would be almost twice the amount of gold in the world.”

      I’ve never heard of any big holders of gold; whether governments, central banks [which are not part of the government like the Federal Reserve] or private families for which the term “altruistic” would seem to apply.

      Maybe altruistic to a point, but probably not to the point of giving away their gold to prop up an inefficient government.

  8. I think the author is not only correct in his assessment of the available gold but there is historical evidence to back his claims of scarcity.

    At the end of the of the First Punic war (241 BC) between Rome and Carthage the Carthaginians were ordered by Rome to pay an immediate sum of 1000 talents of gold and another 2000 talents of gold over ten years. This debt effectively broke Carthage’s monetary back.

    Prior to Carthage’s defeat it can be argued that Carthage was one of the richest city states in the ancient world second only to Tyre. The fine levied (based on the Roman talent at 32.3 kilograms) would equal an immediate payment of 32.3 metric tons of gold followed by an additional payments equaling 64.6 metric tons over 10 years; totaling 96.9 metric tons. This 96.9 metric tons is only 13.6% of the gold produced between 1493 and 1600 AD and a miniscule .06% of the gold produced from 1493 to 2014 AD.

  9. meanreverter | April 11, 2015 at 3:00 pm |

    Steve … In the text, you write ” … 897 mt from 1600-1700, increased significantly to 11,641 mt mt during the next century … “. The “next century” after the 17th (1600–1700) is the 18th, namely 1700–1800. However, when we look at the chart, we see that the 18th century is missing, while the 11,641-tonne quantity is attributed to the 19th century (1800–1900).

    • meanreverter,

      Good eye. I really screwed up that chart. For every 100 charts I make, one is butchered…LOL.

      I see the mistake and will fix it when I return from the city. 1700-1800 time period should be about 1,904 mt.

      Steve

  10. Hi!, Patrons Of SRSrocco Report Et. Al.:

    It isn’t clear to me the drift of this report everyone here but, in terms of what we may be looking forward to experiencing regards where gold is headed in price via flight from paper currencies, the best articulation for me comes from Doug Casey of Casey Research; when he said something to this effect: “When the flight occurs it can be compared to emptying Hoover Dam via a garden hose!” My supposition is regards the amount of above ground, hoarded gold is that none of it has been destroyed has it but that today its’ presence in the world is misallocated isn’t it? For example the supposed gold held in reserves at Fort Knox, Kentucky, according to Article 1; Section 10 of the US Constitution, should be accounted for, by being in the pockets of every US citizen provided to them for FREE from the US Mint; instead of citizens being stressed out under duress of economic consequences to purchase gold from the US Mint in my opinion anyway? We have already gone into and are today attempting to come out of the other side of the supposed Bretton Woods international gold agreement nixed by President Nixon on August 15, 1971 aren’t we? Isn’t it time to begin a new gold era against the tide of supposed gold backing by paper money, by the Constitutional arrangement to place the physical metals of both gold and silver into every American citizens’ pocket via gold and silver coins only? Otherwise, history disproves that we have any right to convince the rest of this world that we are capable of arranging OUR monetary affairs favorable to the needed economic recovery we have been expecting now for more than 40 years. My simple premise is that nobody gets something for nothing and paper money has always proven to be an attempt to get something for nothing; while gold and silver represent payment in full every time in terms of the agreed upon terms of any gold and silver (specie) transactions. J. P. Morgan, Sr. witnessing before OUR US Congress decades ago declared it this way: “Gentlemen: only gold is real money and all else is merely credit!” Spending paper money always belies dilution of buying power of the effected paper money substitutes doesn’t it; while the very facts borne out to US for more than 5,000 years of economic history portrays the precious metals representing stable to rising purchasing powers regulated as limited natural resources by Mother Nature. As far as the classifications of different types of money used, such as gold for Kings, silver for gentlemen, etc., we today have a broad need to capitalize our labor forces and in that regard here is what Daniel Webster has to say: “Of all the various contrivances for cheating the laboring classes of mankind, none has proven to be more successful than that which deludes them with issues of irredeemable, I Owe You Nothing, fiat paper money!” As far as what we KNOW about these subjects, in my opinion again anyway, here is what Thomas Edison told someone decades ago: “Not one person on this planet knows even 1 millionth of 1% about anything!” One thing hopefully upon which we can all agree without knowing everything is that we all desire that OUR economy and the worlds’ economies be sound economically for everyone’s sake and let that be OUR mutual goal. However, move with precaution everyone, because nobody so far has found the means to reallocate and place the worlds’ gold into position and possession where it can bring this monetary transformation into everlasting existence satisfactorily for everyone involved which should be in my estimation the final goal of all the chaos we are now undergoing otherwise.

    RUSS SMITH, CA. (One Of Our Broke, Fiat Money Corrupt States)
    resmith1942@gmail.com

  11. Harold Coffman | April 12, 2015 at 5:35 pm |

    For all the discussion about the amount of gold …
    there is lost there reason for gold … as an ANCHOR
    for MONEY.

    Money anchors all currencies, (via bid/ask ratios) ,
    Each country uses Currency, (basis of tax llaw).

    You work for currency, (not money) … you buy sell
    with currency … (you do not go into McDonald’s
    with a tiny speck of Gold or 1/10 th oz of Silver.

    The MOON could be an Anchor (for ‘ Mooney’ …
    as it can’t be counterfeit, it cant’ be stolen ..
    it is fungible (equallly divided per person in the
    world by geoposition contract … (4 square feet
    tapered to the center of the moon with mining
    rights to each person).

    While Gold is no good as an Anchor … it is the
    Best Anchor … it is bid/ask daily … it has
    5000 years of history. It is periodic-table-stable,
    element, rare, does not rot, or rust, nor attract bugs.

    You guys know all that stuff … but you really need
    to redefine Money as an Anchor … that currency (‘s)
    is not money (just a coupon for money … It should
    be anchored by Government’s agreement and contract
    exchange). Movement of Gold is minimal as it is
    the sanctity of contract (ownership) and the ACH
    clearing of balances

    Gold is the best Money, (as Anchor for all Currencies).

  12. Why the absurd notion of “taking” the gold to back the currency? Never mind the immorality of “taking”, or the difficulty in locating. Gold backed currency is an oxymoron. If you have a government that can balance its budget and maintain a stable money supply then you don’t need a gold backing. If a government like ours is incapable of keeping the lights on without a few extra, new, printed billion dollars a week, then the gold backing won’t hold. You can back all today’s money with your available gold at some price. But what backs tomorrow’s additional; money? An honest money system doesn’t need gold backing and gold backing won’t work for a dishonest one. What we should seek instead is a parallel system of gold and silver for savers that is not taxed as capital gains due to the dishonesty of governments addicted to printing.

    • Tom,

      I agree with you. I don’t believe a gold backed monetary system would work. Anyhow, the system will disintegrate under the REGIME OF A FALLING EROI. So, it makes perfect sense to acquire real physical stores of ECONOMIC ENERGY or ENERGY VALUE such as gold and silver.

      steve

    • In theory a currency fully backed by Gold would adjust automatically whenever you print more money. So if you print one trillion dollars and you have one billion ounces of Gold as collateral, you just increased the dollar denominated price of Gold by $1,000 per ounce. This is the very reason why they will never go to a Gold back currency because it would make the dilution of the currency completely obvious.

  13. It’s also worth pointing out that the incredible long term manipulation of the price of silver has resulted in its being used up and discarded in untold number of tiny increments so that there’s actually more gold above ground than silver!

  14. I hardly ever read what I am about to say, although every blogger and stacker already knows this :

    AS AN ANALOGY, when the market finally crashes, not every seller can get out of the door as it starts closing. Similarly with the people who might think they will buy PMs when times get rough. Well, few will be able to, and those that do will pay a heckuva premium to be able to get any at all. Buying occurs at the margin ( Econ 101 ) and my reserve price will go to the moon when the economy finally tanks.

    HERE IS MY POINT : All of the stackers I know have hundreds or even thousands of ounces of AG, and they also have scores or even hundreds of ounces of AU.

    If there are 7B people in the world, then everyone in the world cannot even have ONE OUNCE OF GOLD or even ONE OUNCE OF SILVER, considering above ground stocks. Using 177,000 tons ( of gold ) times 2000 pounds per ton times 16 ounces per pound – – – you get 5B to 6B ounces. I know that I am not using the correct troy ounce here ( for gold ) but I am not sure how you get from tons mined to TROY ounces . . . . . .

    And when you subtract (i) official gov’t holdings, (ii) museums , (iii) religion , (iv) the Rothschilds , and other super-rich, then there might well be — MUCH LESS THAN ONE OUNCE OF GOLD PER PERSON — available to be acquired when the crash finally comes. And even less silver. BTW, I have read estimates that there are 15,000 to as many as 30,000 tons of AU in private hands in India !

    SO MY POINT IS THIS : For those planning to begin stacking when they finally recognize the smoke signaling the coming conflagration, THEY WILL ALL BE BIDDING, EACH AGAINST THE OTHER ! ! !

    And my rising reserve price means that they cannot have even one of my “stacked ounces” until I really want to sell. If ever.

    BUYING OCCURS AT THE MARGIN.

    http://www.econlib.org/library/Topics/College/margins.html

    And who knows where the marginal price of ONE OUNCE OF GOLD will be for the first available ounce ? After the next economic meltdown ?

    Just thinking out loud ! You cannot insure a burning building.

    I purchased my “financial fire” insurance in the 20th century, and consider myself to have adequate insurance.

    SnowieGeorgie

  15. I presume you are aware of the following two articles?

    How Much Gold Stock is There Really?
    http://www.goldstandardinstitute.net/2012/02/19/how-much-gold-stock-is-there-really/

    Above-ground Gold Stock – How Much Is There and Why Does it Matter?
    https://www.goldbroker.com/en/news/above-ground-gold-stock-how-much-is-there-why-does-matter-546

    If not, they are perhaps worth reading.

    • walk-away,

      Yes… I have seen these estimates. However, finding buried gold artifacts grom several thousand years ago leads me to believe it wss done on a small scale and much of it may be lost.

      Lastly..even if we had a million tons of gold hidden in vaults around the world looking pretty, it will not help us from the upcoming global economic collapse due to PEAK OIL.

      Steve

  16. Gold is the absolute perfect money the world has ever know … look throughout history many replacments have been attempted and ultimately failed ….sometimes you need to get to the very simplicity of things …. all paper currency will fade and turn to ash in 100 yrs , that brand new house will decay and rot in 300 years , that brand new car in the junk yard in 50 years , if its a Ferrari good luck eventually the moldings will dry up and peel off even if you leave in a climate controlled garage ….my point is GOLD is everlasting it cannot rust , decay or rot …and that trait alone makes it money ..not to mention its beauty and rarenenss ( rareness to a perfect amount not too rare but not to abundant ) tends to keep up with population …. GOLD standard cannot work in a welfare state ..the reason being the government cannot give a recipient something for nothing ..it has to be nothing for nothing ( fiat) … could you imagine if instead of food stamps the government was handing out precious irreplaceable only by energy and sweat GOLD ..it cannot happen ……..but to be truly free an honest MONEY IS GOLD …… I would believe a good scenario would be to back the USD with a gold standard again take all money supply and divide by how many ounces we have and walllah make a new gold price ! .. the interst rates can rise when when gold stock becomes low and get gold to be curbed back in as citenens would rather opt for a return than hold metal and rates can be dropped when gold stocks are high in levels …. this can al happen as the paper would be good as gold to be redeemable and then be considered honest ….

  17. Hi Steve,

    Another great article. As usual very thought provoking – which got me thinking about the silver side of the equation. The number of ounces of gold 177,000 MT equates to is 5.7 billion (177K * 32,150 oz/MT). Assuming a Ag/Au ratio of 15:1 out of the ground, that would give us roughly 85.5 billion ounces of silver mined over the same period. Your recent article “Banker Cartel’s Real Enemy: Physical Silver Investment Demand” showed industrial demand being about 500 million oz’s/year. As I understand, there is only about 1-2 billion oz’s of above ground silver available (mainly in investment hands), the rest being used up by industry each year. I am trying to get my head around 85 billion oz’s of silver being used up, especially since industrial demand probably really started in the 1950’s/1960’s (with the age of electronics). (500 million oz’s/year over the last 60 years is only 30 billion oz’s.) Prior to the electronic age would have been photography, but most of that would have been recycled. Maybe there a lot more held in investments than the 1-2 billion oz’s that is often cited? Any thoughts on this? I am probably missing something with the thought process. Thanks again.

    Marty

    • Silverwillwin | April 13, 2015 at 8:16 pm |

      Marty , I believe that silver’s surge in industrial use started in the 40’s rather then the 50’s. That alone would tack on 10 more years of demand for calculated loss.

      Due to physical silver’s finite nature and questionable amounts in the future always around for industry , technology , medicine , or water filtration purposes , it wouldn’t surprise me to see a company like Intel place a 10,000 ton order .

      If that ever happens , all bets are off.

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