LIVE Gold Prices $  | E-Mail Subscriptions | Update GoldSeek | GoldSeek Radio 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines to Launch New Website

Is Gold Price Action Warning Of Imminent Monetary Collapse Part 2?
By: Hubert Moolman

Gold and Silver Are Just Getting Started
By: Frank Holmes, US Funds

Silver Makes High Wave Candle at Target – Here’s What to Expect…
By: Clive Maund

Gold Blows Through Upside Resistance - The Chase Is On
By: Avi Gilburt

U.S. Mint To Reduce Gold & Silver Eagle Production Over The Next 12-18 Months
By: Steve St. Angelo, SRSrocco Report

Gold's sharp rise throws Financial Times into an erroneous sulk
By: Chris Powell, GATA

Precious Metals Update Video: Gold's unusual strength
By: Ira Epstein

Asian Metals Market Update: July-29-2020
By: Chintan Karnani, Insignia Consultants

Gold's rise is a 'mystery' because journalism always fails to pursue it
By: Chris Powell, GATA


GoldSeek Web

Why would a gold-mining executive want low prices to continue? That's easy

By: Chris Powell, Secretary/Treasurer, GATA

 -- Published: Tuesday, 1 March 2016 | Print  | Disqus 

Dear Friend of GATA and Gold:

GATA's friend T.L. says he is confused about why the chief executive of a major gold-mining company -- that is, Randgold's Mark Bristow -- would tell Bloomberg News yesterday that a lower gold price would be good for the industry:

Bloomberg quotes Bristow as noting that the longer that gold prices stay low, the more production will fall, thereby supporting prices over the longer term.

But additional inferences may be drawn. That is, Randgold has a few rich mines in Africa with low cash costs -- the company estimates them as being less than $700 per ounce -- and is comfortably profitable at current gold prices. As low prices push more marginal mines out of production, those mines become available for purchase by more profitable mining companies like Randgold at distress prices. If such marginal mines are indeed purchased at distress prices and the market eventually turns upward, as through the collapse of the latest round of gold price suppression by central banks, the acquiring mining companies will enjoy a windfall.

There would be nothing strange about such a strategy in the gold-mining business. Indeed, this was the strategy used by Barrick Gold in the 2000s when it was using gold leasing by central banks to hedge much of its production and, in doing so, even claiming to be the agent of central banks:

Barrick's heavy hedging drove the gold price down, making other gold miners unprofitable, and then Barrick bought two big competitors cheaply, Homestake Mining and Placer Dome.

Randgold also has been considering acquisitions lately --

-- and recently withdrew from a big one in Ghana after recalculating the likely profit. Any gold-mining company on the hunt for more assets certainly wouldn't want the market to move up before the hunt was complete, just as some gold investors, figuring that the market is starting to turn back up, lately have been hoping for one more smashing of the price by central banks so investors can establish a better entry position.

Of course for other gold investors, especially those who have suffered losses over the last four years, the turn back up can't come too soon. They shouldn't look to Bristow for sympathy, especially since, like many other gold-mining executives, he seems perfectly content with the rigging of the gold market by central banks.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *

Join GATA here:

Mines and Money Asia
Tuesday-Thursday, April 5-7, 2016
Hong Kong Convention and Exhibition Centre
Hong Kong Special Administrative Region, China

Mining Investment Asia
Wednesday-Friday, April 13-15, 2016
Marina Bay Sands, Singapore

Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:

Or by purchasing a colorful GATA T-shirt:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit:

| Digg This Article
 -- Published: Tuesday, 1 March 2016 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2019 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


The views contained here may not represent the views of, Gold Seek LLC, its affiliates or advertisers., Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, Gold Seek LLC, is strictly prohibited. In no event shall, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.