-- Posted Wednesday, 3 July 2013 | | Disqus
Dear Friend of GATA and Gold:
Hinde Capital's co-founder and chief financial officer, Mark Mahaffey, writes today that the World Gold Council's new metric for calculating gold mining costs --
-- probably underestimates them, that the real average cost is probably around $1,750 per ounce, and that gold miners on average are probably operating at a 30 percent loss.
"What," Mahaffey asks, "is the likely outcome? We have been mining for 4,000 years; it can't just stop. The most immediate scenario is a combination of closures, mass bankruptcies, merger and acquisition activity, and a dramatic cost cutting coupled with asset sales."But Mahaffey is wrong; gold mining can just stop, and the World Gold Council itself is even facilitating the end of gold mining with its assistance in the creation of "paper" gold around the world.
After all, if investors are happy to settle for paper or electrons drawn against paper, an infinite amount of imaginary gold will always be available, no one ever again will need to get his hands dirty digging the metal out of the ground, and no governments and central banks will ever need to worry about competition for their money and bonds from what used to be considered natural money.
And no one will need to get his hands dirty even in burying the gold mining industry. Having nothing to say about the falsification of its product and the resulting rigging of its market, the industry -- for the most part dumber than the rocks it mines -- already is digging its own grave and promising to jump in and scoop the dirt over its own head.
Will the World Gold Council even send flowers?
Mahaffey's commentary is headlined "Where Has All the Gold Gone?" and it's posted at Hinde Capital's Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
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-- Posted Wednesday, 3 July 2013 | Digg This Article | Source: GoldSeek.com