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We're running out of gold!

The Canadian company Barrick Gold, the world's largest gold producer, has announced that the world's gold supply is running out. The year 2000 was apparently the peak for gold production, and since then, the quality and quantity of mined gold has been declining. Meanwhile, banks around the world are hoarding gold in response to the shortage.

http://www.telegraph.co.uk/finance/newsbysector/industry/mining/6546579/Barrick-shuts-hedge-book-as-world-gold-supply-runs-out.html

Comments

( 7 comments — Leave a comment )
ccdesan
Nov. 15th, 2009 04:27 am (UTC)
Dey needs to find de mudder lode, or de Los' Dutchman's mine...
dhlawrence
Nov. 15th, 2009 04:41 am (UTC)
They mean that the amount of gold they can make money off of is running out. Gold hasn't been destroyed to my knowledge, so current supplies are still there. Barrick just doesn't own them XD

I wonder if I should sell my stock if they don't plan to be around in the long term.
coyoty
Nov. 15th, 2009 05:16 am (UTC)
They could be trying to manipulate the market by telling people gold production is endangered, then buying up the dumped stock, then "discovering" new deposits.
dhlawrence
Nov. 15th, 2009 05:32 am (UTC)
It's possible, but I can't see them being that patient. Usually if a company wants to buy their stock back, they just do it. Had a company do that to me already. RIM's doing that now with some of their shares on the NASDAQ; they just announced that they were buying the shares back, full stop.
torakiyoshi
Nov. 15th, 2009 06:46 am (UTC)
I would still rather be on a metal standard than worthless fiat currency which they can inflate whenever they feel like it.

-=TK
dhlawrence
Nov. 15th, 2009 04:19 pm (UTC)
As long as it's a stable metal. Gold can be too volatile, as history has shown us. One of the contributing factors to the French Revolution was that the money was worthless; there was no gold in the royal vaults to back up its value. In Spain the opposite happened; there was so much gold coming up from the South American colonies that there was no value to it--anybody could have gold.
torakiyoshi
Nov. 15th, 2009 10:09 pm (UTC)
One of the contributing factors to the French Revolution was that the money was worthless; there was no gold in the royal vaults to back up its value.

Aye, so it was, in effect, a fiat currency, and we come back to the same problem.

In Spain, they overwhelmed the market and had runaway inflation, so we need to control the influx, but the only real difference between that and doubling the ammount of a fiat currency that it is significantly easier to increase how much paper money you print. Look at Japan after World War II and Germany after World War I to see that in action.

At least, with a metal standard, there is actual money backing it up!

-=TK
( 7 comments — Leave a comment )

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