Iran has opened a new gold processing plant, reportedly the biggest in the Middle East, hoping to double its production of precious metals. Using a unique technology, Tehran says it will now mine up to three tons of gold per year.
Iranian TV reported that the opening ceremony was attended by First Vice President Ishaq Jahangiri.
The new facility is located near one of the country's richest mines, Zareh Shuran. It is located 35 kilometers from the city of Takaab in northwest Iran, in an area where gold, silver, and mercury are extracted.
Across the industry, costs are about $1,300 an ounce including debt repayments, Holland said by phone from Johannesburg today, citing analysts’ research. Gold dropped 0.1 percent to $1,182 an ounce, bringing the decline since the beginning of 2013 to 29 percent.
“The industry by and large is under water,” Holland said. “I would expect further writedowns. Production I think will be curtailed but it will take some time to filter through the system.”
Gold producers are struggling to adapt to a lower bullion price after a decade of debt-fueled expansion, acquisitions and cost inflation during the boom years that saw bullion peak at $1,921.17 an ounce in September 2011. The spot price has tumbled in the past 18 months as investors speculate the Federal Reserve will raise interest rates due to an improving U.S. economy, lowering demand for the safe-haven metal.
A lot of folks took advantage of recently falling gold and silver prices to beef up their precious metals holdings.
Those adding to their portfolios understood the old adage of buying low and selling high. Unfortunately, others wait until dollar values of gold and silver have zoomed before deciding to convert their paper money.
Still, most make buying decisions for their own good reasons. They either have the confidence of their convictions, or they have good questions still unanswered
Gold took an early run at breaking out, but then was held at the overhead resistance and 'psychologically important' 1200 level. We'll have to see if gold can rise above resistance and break fee, and change this downtrend of lower highs and lower lows.
Someone asked me to comment on the notion that price manipulation is not possible in large markets like the precious metals. I cannot believe that this canard is being taken seriously again at this late date.
Eric King: “But, Peter, the Germans asked to see their gold supposedly stored at the New York Fed and they were told, ‘No,’ by the Fed. The absurd excuse given to the Germans was that their entry into the vault would somehow represent a ‘security risk.’ This is of course preposterous but that was the lie that was used to conceal whatever truth the New York Fed did not want the Germans to discover -- namely that their gold was already sold into the market.”
Boehringer: “That’s absolutely right. I can only agree with you that it is preposterous. Even the 5 tonnes that have been repatriated back to Germany from the Fed had to be recast. Why in the world would our original serial-numbered gold bars deposited into the Fed for safekeeping have to be melted down and recast into new bars?
Click through for the full interview. Rather interesting.
Today, as gold and silver prices still trade well below their reported cost of production, experts from everywhere are weighing in on reasons why. Some say it’s because QE3 ended, proving the economy is growing. Others say, it is because stocks are up and the fear trade no longer exists. Still others point to the Fed and its promise to keep interest rates near zero for a longer period of time.
What I did not hear from any mainstreamers is that now is a great time to buy gold and silver on the dips. When stocks go down we hear it all day long. When gold and silver go down we just hear mouthfuls of disdain for the metals and their future. I did hear reference to one positive comment on gold. It was a mockery of Alan Greenspan when he said, “Gold is a good place to put money these days given its value as a currency outside of the policies conducted by governments.” Not even the most respected banker in the history of the world can polish gold’s reputation of late.
Maybe now is a good time to regain a perspective on why anyone owns gold and silver at all. Generally, those who own, do so for one of two reasons. First, to be diversified and protected ...
China is working on its very serious pollution problem. To tackle this problem one of the things China is implementing is the increased use of silver photovoltaics. What this means is that by 2017 demand for silver in photovoltaics alone will represent at least a staggering 18 percent of all silver demand.
But this is where it gets interesting. The I.E.A., which is the International Energy Agency, likes oil. But even the I.E.A. said that the need for silver is going to be for 4 terawatts by 2050. Well, Eric, one terawatt represents 1,000 gigawatts. So we are talking about a remarkable 4,000 gigawatts. ...
I want to inform you regarding the APEC meeting in China as portrayed on Chinese TV. A "news" show gives 1.5 minutes to report on the APEC meeting. About one-third of it is the BRICs sitting together, then photo ops together, all smiles and hand holding showing a happy group united, then more BRIC reports. So the APEC meeting to the Chinese is mainly about BRICs. The new, new world order, eh what?
The Chinese viewers will likely see the BRICs as the stronger future. Oh ya.
Regards, CIGA BMac
This is a rather interesting letter from a reader to Jim Sinclair. It bears some thought in regard to the implications.
Society expects bank employees to be honest when entrusting them with money. However, new research involving bankers suggests they are more likely than other professionals to be dishonest if they are reminded about their professional role.
When bank employees were primed to think less about their profession and more about normal life, however, they were less inclined to dishonesty, the study by the University of Zurich reveals.
"Many scandals..have plagued the financial industry in the last decade," Ernst Fehr, a researcher at the University of Zurich who co-led the study, told Reuters. "These scandals raise the question whether the business culture in the banking industry is favoring, or at least tolerating, fraudulent or unethical behaviors."
Author: A. Ananthalakshmi (Reuters) Posted: Thursday , 20 Nov 2014 SINGAPORE (REUTERS) -
Some of the biggest price moves in gold since late October have, unusually, occurred in Asian hours and traders more accustomed to following the lead of their Western counterparts suspect a big increase in algorithmic trading may be to blame.
Sensitivity to the dollar-yen exchange rate may also help explain the moves, although some traders speculated that the timing looked suspiciously like attempts to catch Chinese traders off-guard during their lunch break.
Liquidity in Asia tends to be thin until Europe wakes up but recent weeks have been different: COMEX gold futures, the busiest gold contract in the world, have suffered sharp sell-offs in Asia, sometimes sparked by the news flow or currency moves but often for no identifiable reason.
"It is unusual for Asia to be seeing these busy trading sessions," said David Govett, head of precious metals at broker Marex Spectron in London.
After two years, and 396 pages of report, the Senate investigations committee finds (translating their gobbledygook into English) that the banks did indeed corner and rig the commodity market. As Bloomberg reports, the Senate panel said the firms have eroded the line separating banking from commercial activities to the detriment of consumers and the financial system. The holdings give banks access to non-public information that could move markets and increase the likelihood that industrial accidents will spur taxpayer bailouts, the report said... (i.e. manipulated the system). The hearing, involving bankers from Goldman, Morgan Stanley, and JPMorgan begins at 930ET...
"We had to struggle with the old enemies of peace--business and financial monopoly, speculation, reckless banking, class antagonism, sectionalism, war profiteering.
They had begun to consider the Government of the United States as a mere appendage to their own affairs. We know now that Government by organized money is just as dangerous as Government by organized mob."
Franklin D. Roosevelt
"Why is JP Morgan getting so much heat? Maybe because it is a massive international crime syndicate."
Matt Taibbi, Talking JPM With Sam Seder
JPM and Goldman sought and obtained manipulative powers in global commodities, even while they were being bailed out on the back of the American people? Oh no, nothing like this could be true, or so the shills and toadies of the moneyed interests will say. Just get the government out of our way, and everything will be all right. The market is naturally rational and efficient, pure and pristine. No Bank would risk its reputation by doing anything illegal.
Especially when they buy off and intimidate enforcement, write the laws, and do what they will.
As Japanese Prime Minster Shinzo Abe has turned his country into a petri dish of Keynesian ideas, the trajectory of Japan’s economy has much to teach us about the wisdom of those policies. And although the warning sirens are blasting at the highest volumes imaginable, few economists can hear the alarm. Data out this week shows the Japanese economy returning to recession by contracting for the second straight quarter (and three out of the last four quarters). The conclusion reached by the Keynesian apologists is that the benefits of inflation caused by the monetary stimulus have been counteracted, temporarily, by the negative effects of inflation caused by taxes. This tortured logic should be a clear indication that the policies were flawed from the start.
Top trends researcher Gerald Celente is forecasting a slowing global economy in 2015, and oil is a leading indicator. Celente explains, “It’s all in oil. We’ve been talking about oil prices since they peaked in June of this year. Now, you are seeing a 30% decline in Brent crude and West Texas (crude oil). This is big and it’s not a manipulated market. This is real. Yes, supply is up, but demand is down, and demand is down big time. You don’t have to look at that as an assumption, you can look at that as a fact. Here’s the fact. The fact is China is one of the biggest consumers of energy and commodities in the world. You are seeing investment in China coming down to 2000 levels. You are seeing production falling back to great recession levels in 2008 and 2009. . . . This is a global slowdown. It’s in front of everybody’s eyes, and oil is telling the story.”
So, what’s in store for 2015? Let’s start with the global economy. Celente says, “The economy is on a decline and it’s unquestionable. They are boosting the equity markets with record low interest rates. It’s a Ponzi scheme, and at some point, it has to explode.”