Category Archives: Gold Stocks

Gold Arithmetic

Gold Arithmetic

“If you want to lead an extraordinary life, find out what the ordinary do – and don’t do it.” Tommy Newberry, writer and motivational speaker

February 16: Gold $1207.50 down $31.60. Silver $15.33 down 45 cents.

         Gold had trouble today at the Comex. I doubt if recent news had anything to do with it. There wasn’t any. The Comex has been rigging prices for its members since Robert Rubin brought Goldman’s “gold carry trade” to the Comex in 1994. gold bar stuff

But, what if recent news from the World Gold Council seeps into the public mind? Would that make any difference to anything? The following figures are from, Bill Murphy presiding. (The WGC url is below)

World Gold Council, Full year 2015 figures…of GOLD SUPPLY:

Total supply was down 4% to 4,258 tonnes compared to 4,414t in 2014.

Total mine supply was down 2% to 3,165t from 3,244t in 2014

[Probably 2800 tonnes of gold was actually mined from the earth last year.]

This is reflective of both recycling hitting multi-year lows and mine production growth falling to its lowest level since 2008.

World Gold Council, Full year 2015 figures…of GOLD DEMAND:

Overall demand was 4,212t ??, flat when compared to the 2014 figure of 4,226t

  1. Central bank demand was virtually flat at 588t compared to 584t in 2014
  1. Global investment demand was 878t a growth of 8% from 815t in 2014
  1. Total consumer demand was 3,427t, a 2% decline compared to 3,481t in 2014
  1. Global jewellery demand in 2015 was down 3% to 2,415t from 2,481t in 2014
  1. Demand in the technology sector was down 5% to 331t from 346t in 2014

         Full year 2015 saw China (985t) and India (849t) continue their dominance in the global gold buying market, accounting for close to 45% of global gold demand during 2015, with annual consumer demand in both up 2% and 1% respectively.

         Let’s take a moment to visit with the WGC demand total of 4212 tonnes:

CB demand….588t





When I add up those figures, I get a total of..7675 tonnes

         Say what?

And did thgold dragoney count China and India? Where?

         Now…either the WGC is completely stupid (possibly) or they’re just not trying to have their numbers make sense. At the least, I’d recommend that somebody needs some remedial help in presenting mining information, and soon. And every major gold mining company kicks in a piece of their sold gold to the WGC for assistance with their marketing efforts.

         And in a totally unrelated story, when smart Central Banks are buying gold wherever they can find it…Canada sells nearly half of all its gold reserves half-of-all-its-gold-reserves/ Gee, did Canada know all those other Central Banks were buying gold?

         Some day in the hopefully not too distant future, maybe supply and demand figures will make sense.

         I finally thought it was time to mention that gold metal has gone up this year, amidst everything else going down. But,, said gold stocks are still 51% undervalued.


Maybe I ought to go buy some more of that shiny metal stuff. At the very least, track the prices of the Gabelli closed end fund (GGN) and the Global X Silver Miners ETF (SIL) Both are still cheap.

         But what do I know?

Bonds . . . James Bonds

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Happy New Year Recommendations for 2012

Happy New Year Recommendations for 2012

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