Gold

Discussion in 'Bullion Investing' started by CHARLES GINETTO, Feb 10, 2020.

  1. CHARLES GINETTO

    CHARLES GINETTO Active Member

    Yesterday I watched 60 Minutes. One of their reports was on gold mines in South Africa. There used to be 20 and now there are 2 left. The manager said that the world is running out of gold. Given that fact, would it be better to hold on to gold until it skyrockets or sell it for whatever you can get now?
     
    GoldFinger1969 likes this.
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  3. FryDaddyJr

    FryDaddyJr Junior Member

    why would selling now make sense?
     
    Spark1951 likes this.
  4. rte

    rte Well-Known Member

    The world maybe running out of people that want to mine it VS the gold itself.
     
  5. CaptainMac

    CaptainMac Gotta Love Those Errors!

    I would like to agree with this, but also take the original side. It is a risky business after all, since you have to have an idea of the area and what it could hold gold wise, and if you guess wrong, you're out a lot of money. It is probably getting harder to either find a good spot or make enough to keep a mining company operational. Also, gold is a very limited resource compared to the others, so it most likely is getting harder to find, that point I would agree with. I wouldn't think that'd be the reasons for mines closing more so than the cost of running it, and making a profit in doing so. Those mines still probably found gold, but not enough to support their self.
     
    Last edited: Feb 10, 2020
    GoldFinger1969 likes this.
  6. Michael K

    Michael K Well-Known Member

    There will always be gold.
    People bring in jewelry and melt it, and they are still digging gold out of the earth,
    besides South Africa.
     
    Two Dogs and CaptainMac like this.
  7. FryDaddyJr

    FryDaddyJr Junior Member

    gold is also a by product of copper mining, silver mining, etc.
     
    Stevearino likes this.
  8. Heavymetal

    Heavymetal Well-Known Member

    Not getting easier or cheaper to pull metals from the ground. Labor problems, civil unrest, wars, environmental problems.
    US deficit even with full employment. Dollar index is in bubble territory.
    I just went back into PMs. Slowly into GLD
     
  9. myownprivy

    myownprivy Well-Known Member

    Why did I open a topic titled "gold?"

    About a third of gold supply each year is recycled. We're not going to "run out." When demand outstrips supply, price goes and less desirable gold gets turned into more desirable gold.

    We're fine.
     
    GoldFinger1969 likes this.
  10. J.T. Parker

    J.T. Parker Active Member

    I too saw the '60 mins.' TV show yesterday and recall that the problem w/ mining gold in S. Africa concerns how deep the miners have to mine the ore.
    I bought roughly 25 ounces worth of 'collectible' gold when it was $900/oz. Not because I was so darn prescient, but because it was just the first time, in my life, that I had the money to invest!
    Rather serendipitous, sez I....(and a total fluke)
    Just as long as the price remains above 900, I'm cool.
    Regards,
    J.T.
     
    fretboard and Heavymetal like this.
  11. fretboard

    fretboard Defender of Old Coinage!

    I'm holding, I'm hoping the price will skyrocket but I'm already making money on some of my purchases, so I'm good! ;) I don't think the world will ever run out of gold, not in my lifetime and I'm in my 60's so I don't have much time left anyways! laughhard.gif
     
  12. medoraman

    medoraman Supporter! Supporter

    The "world" to that manager might be running out of gold, but his "world" is probably means close to the surface, very rich deposits like they used to have in SA. Gold is actually abnormally minable, being able to be recovered in microscopic quantities in alluvial deposits due to its weight and non reactivity.

    Will hard rock deposit mines for gold continue to decline? Possibly, but with massive copper mines do not see the world running out.
     
    -jeffB likes this.
  13. mpcusa

    mpcusa "Official C.T. TROLL SWEEPER"

    Dont forget all the ones not run by the government, i am sure there are several
    underground operations.
     
  14. GoldFinger1969

    GoldFinger1969 Well-Known Member

    That was a repeat of an piece that aired months ago.

    The depletion of the deep South African mines has been known for decades. An even bigger reducere of supply has been the capital mismanagement involving M&A and new mines which has resulted in huge destruction of shareholder value in the last 10-12 years.

    Central bank selling continues to be an overhang and ultimately you need more demand to push the price up.

    If things go "wrong" this November, the price could hit $3,000 an ounce by year-end.
     
  15. GoldFinger1969

    GoldFinger1969 Well-Known Member

    Those mines were owned by private corporations. The government may own equity stakes in the miners.
     
  16. Randy Abercrombie

    Randy Abercrombie Supporter! Supporter

    I am like @J.T. Parker and was fortunate that in the 1990’s I made some money and dropped a lot of it in gold coins. It wasn’t a brilliant play... I just wanted gold coins because I couldn’t afford any before. At this point I believe I have tripled that investment..... My whole point is that in hindsight I would say now that gold is a very long term hold. Is now a good time? Well, only if you can live without the cash for a very long time.
     
    J.T. Parker and GoldFinger1969 like this.
  17. CHARLES GINETTO

    CHARLES GINETTO Active Member

    What do you mean "if things go wring?"
     
  18. -jeffB

    -jeffB Greshams LEO Supporter

    Can't say in this venue, I'm sure.
     
    GoldFinger1969 likes this.
  19. GoldFinger1969

    GoldFinger1969 Well-Known Member

    Yup. :D

    I'm assuming that private ownership of gold does not do a 180 back to April 1933, something I used to roll my eyes at in the past but now I have to at least assume it's possible EDITED
    That said, I am talking about a fundamental reevaluation of private property rights in this country.

    I am writing a piece on this for The WSJ and hope to comment more there. :cigar:
     
    Last edited by a moderator: Feb 14, 2020
  20. imrich

    imrich Supporter! Supporter

    I've collected Gold coins for ~50 years, and certified Gold since it's origin. Gold bullion value has increased to ~500% of that when I started collecting bullion African Gold coins.

    The bullion coins were eventually easily sold at a profit on Yahoo, and then on eBay. The sale funds purchased pre-1933 U.S. classic Gold. I now collect scarce date certified U.S. classic Gold, which I believe to be a great tangible asset for a knowledgeable "collector".

    These purchases, in my opinion, could not be surpassed for a stable investment, and relatively secure estate protector. If like purchases are made wisely today, it's believed to be one of the most secure for protection of an estate. The Gold coins are awesome items to hold and behold, relative to my fiat, and electronic collections.

    JMHO
     
    Last edited: Feb 13, 2020
  21. Collecting Nut

    Collecting Nut Borderline Hoarder

    The world is running out of gold? What he didn't say was easily mined gold.
     
    TheFinn and GoldFinger1969 like this.
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