Read
the Wednesday Afternoon Wrap-Up for 2/13/2013 and the Thursday Morning
Commentary for 2/14/2013
Aside from the MASSIVELY PM-BULLISH factor of limitless Central bank
MONEY PRINTING, I have continually harped on the fact evidence points to gold
and silver marginal costs of
production approaching $1,500/oz and
$30/oz, respectively…
GFMS Says 2012 Gold Mining Cash
Costs Increased 17% to Most Ever
…thus, preventing production from meaningfully increasing…
Gold Production is Declining
…if at all…
Silver
Production in US
Declines 8.7% in
2011
Naked shorting of hapless mining
shares has further reduced miners’ ability to arrest inexorable
production declines and counter surging costs; and I strongly urge you to enhance the deleterious
“unintended consequences” of this nefarious Cartel scheme by “SELLING MINERS, and DESTROYING THE
CARTEL”…
Gold companies looking to forget 2012
In many cases, this is already occurring; but NO PLACE more than South
Africa…
South Africa mining to shed jobs
in troubled times
…where gold production just hit a 90-year low…
South African Gold Production
Dives Again To 90-Year Lows
…down 50% since the PM bull commenced in 2000…
Source: Seeking
Alpha
For decades,
South Africa was the undisputed gold mining KING; cumulatively, responsible
for 50% of ALL gold ever mined. However, just as the energy industry
witnessed ten years ago…
Source: ihs.com
…the “low hanging fruit” has been picked clean, yielding surging mining costs…
South Africa faces mining dilemma as costs soar
…particularly
in South Africa – where most remaining reserves are way below the surface – in
some cases, by up to 2½ miles…
The Decline of South African Gold Mining
Moreover, the nation faces horrific
electricity shortages…
Adding to mining costs, Eskom Holdings Ltd., which supplies about 95
percent of South Africa’s
power, is seeking 16 percent average annual tariff increases until 2018 to
fund expansion.
…and chronic labor
issues…
S.Africa’s Zuma
equates mine closure plans with “blackmail”
..prompting
MASSIVE layoffs…
…unemployment…
…financial losses…
Amplats makes first annual loss, risks
more labor strife
…and divestment…
Gold Fields spin-off a vote on S.Africa mining industry
Thus, it should be no surprise that the historical bulwark of global gold
production has been driven into obscurity – NEVER to be replaced…
Ironically, the U.S. Geological Service (USGS) – in its last such
report in 2009 – still lists
South Africa has holding more than 30% of the world’s known reserve base…
…while the world’s current
leading producer – China – doesn’t even make the list…
List of countries by gold
production
“THE RISE AND FALL OF SOUTH AFRICAN MINING” should serve as a lesson
to those believing “peak gold” is not possible; let alone, “PEAK SILVER.”
Artificial price
suppression is taking its toll on PM production in general; however, natural decline is equally
debilitating; particularly given
the veritable EXPLOSION in PHYSICAL demand…
China’s Gold Imports from Hong
Kong Double to New Record In 2012
Don’t be surprised to see similar articles about other major producers
– like the U.S. – in short order; not to mention, the inevitable price surges
that accompany such MASSIVELY bullish supply/demand fundamentals.
