Cost of production is irrelevant, gold is not a consumed product. The vast majority of gold supplied to the market each year comes from gold that already was mined at some point in the past 2000 years.
The price of gold affects miners, not the other way around.
Let's face it many of the employed are working in seasonal, part time and temp jobs. Yes they are employed , no they are not making a living. These are the facts. CNBC interviewed a CEO of a company mines this data and he acknowledged as much. For Joe six pack the economy sugs.
The U.S. economy grew a revised 3.6% in the third quarter, posting the best performance since early 2012. Great news, right?
Not really. The report has already spurred several Wall Street firms to cut growth targets for the final three months of 2013 and more are likely to do so. Gross domestic product is projected to drop to 1.6% or even far less.
The reason: stockpiles of goods produced but not yet sold. U.S. firms added a huge amount of inventories in the third quarter in anticipation that they would sell a lot more stuff to consumers and businesses in the fourth quarter. Now it appears they overdid it.
The government on Thursday raised the value of inventories added to the economy in the third quarter to $116.5 billion from a preliminary estimate of $86 billion, accounting for virtually all of the upward revision in third quarter GDP from the government’s original 2.8% estimate. That’s the biggest increase in stockpiles since the first quarter of 1998.
Yet inventories almost always taper off in the quarter following a big increase, acting as a drag on the U.S. economy.
How come? The production of goods is counted as a positive for GDP even if they go unsold or sell below a company’s asking price. Higher inventories boost GDP and slower inventory growth subtracts from the nation’s growth rate.
“While rising inventories generally are a sign of increasing growth, the $116.5 billion build-up is more than what one would expect at this time given the economy’s underlying strength,” said Doug Handler, chief U.S. economist at IHS Global Insight. “Typically, large build-ups such as this one are followed by much smaller build-ups in the next one or two quarters as manufacturers, wholesalers and retailers readjust their inventories to match sales.”
My opinion is Feds know that tapering has to be done slowing over a course of a year, or manufacturing crashes along with the market and economy
Well, if gold goes even lower, some miners might stop mining it causing supply decrease. Withe less supply, gold price can will go up. Isn't that simply economic law?
The wall street club has allowed Dow and Nasdaq favorites to dip downward for five consecutive days, but they must create a massive rally at any moment in order to wipe out all their multi-thousands of written puts that they sold to the small investor fools betting against the annual Xmas rally. More importantly, the wall street club can not allow this Dow and Nasdaq dip to continue much longer because that might suggest a reemergence of a Dow and Nasdaq bear market --- and the wall street club must ensure this Dow and Nasdaq bull continues for many more years in order to absorb the astronomical monies that will leave the bond market for years to come.
As rates rise, popping the bond market bubble, trillions of dollars must find a new home, and as I proved in previous posts, Goldman and the wall street club must steer that bond market money into Dow and Nasdaq favorites, and certainly will not allow any portion to seek refuge in the gold and silver nutjob sector. The bond market is far too large to be allowed to send any considerable $$$ into tiny gold and silver jokes. The number one threat to the wall street club are rising gold and silver prices, because they compete with the US dollar, and the wall street club has never allowed a fair playing field in the competition between the metals and the Dollar for many decades, and the wall street club is not about to change their strategy lol
At any moment, the wall street club will send the Dow and Nasdaq through the roof, and erase the past five day dip in a single hour of trading. We will see an amazing Dec rally in the Dow and Nasdaq, as certain as the sun rising in the East., but small investors just can't seem to figure things out, and that's why they remain small investors lol
fran you have the head of a pig. Gold is moving from west to east FAST especially to china. Soon there will be no more physical gold as miners reduce production while people and banks accumulate.
Goldman and the wall street club must crash gold and silver as interest rates rise for the next several years, otherwise trillions of bond monies will escape the rising rates by flowing into the very tiny gold and silver sector and those trillions would overwhelm it, and turn it vertical. Goldman wants all the monies leaving the giant bond market to flow into dow and nasdaq favorites, not gold or silver. There is no chance in hell Goldman will allow any flight to safety into golds or silvers, that would endanger their massive gold and silver physical shorts accumulated over the past decades, as the lead member of the Fed, and Goldman controls the entire stock market casino. In case you small investors didn't notice, 99% of all dow and nasdaq downturns also result in gold and silver downturns, so Goldman killed the flight to safety aspect of golds and silvers ages ago.
When you understand that fact, at the very least, the last thing you would ever do is purchase a single call option in golds or silvers, that is truly the action of small investor fools. All the experts like me are loading the boat with in the money gold and silver puts, along with in the money calls belonging to the Dow and Nasdaq favorites, for what will be the biggest $$$ score ever. If you've been watching the markets the past decade or so, then you would never consider any other strategy.
But the small investors never seem to get it, amazing how they get it wrong all the time lol
And that’s exactly what you are seeing with their gold production. There is no way, given China’s reserve base, that they could afford to mine as much gold as they are mining today unless they are assuming gold will trade between $2,000 and $2,500. This is because some of their reserves are being mined at a significant loss in terms of today’s gold price.
So here you have a country that is buying gold hand-over-fist, and they are mining gold as if they know it’s going to be priced at a minimum of $2,000 to $2,500. As an investor, I’m not going to fight them. It’s one thing to say, ‘They are buying gold.’ Well, they are buying gold at around $1,200, but it’s another thing to see them mining gold at all-in cash costs in the $2,000 to $2,500 range on some of these projects in China.
In other words, the Chinese are betting on significantly higher gold prices over time, otherwise they wouldn’t be mining at those high cost projects in China. But they are spending that kind of money right now at some of these projects in order to cultivate gold. So either you believe the Chinese are idiots, or you believe they are correct in their belief that gold is going to surge well over $2,000 an ounce. I’m betting the Chinese are right and gold is going a hell of a lot higher from here over time.”