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of one mine
21st August 2009, 13:02
I am posting this here so everyone has a chance to read. It agrees with the current trend of thought of PM's.
They say gold could move up to three times value and they are releasing this info publicly on the 26th this month. A small mine is just one that will benefit. So I concurr with the other news about the prices.

We just discovered that Rob McEwen (former Goldcorp CEO) has purchased 41 million shares of a tiny Canadian mining company.
Upon further investigation the VP Director of Investor Relations disclosed the discovery of a "bonanza-grade intercept" that likely contains 3 to 8 million ounces of gold.

of one mine

Argyria
21st August 2009, 14:31
Who is 'they'?

Homer
21st August 2009, 15:29
I am confused.

If there will be 3-8 million ounces more of it around, why will the price triple?

Seems backwards to me.

Katwoman
21st August 2009, 15:54
Why because 8 million troy ounces is only 0.000248 mt and global gold supply is estimated to be 3,859 mt.

Argyria
21st August 2009, 16:11
What's an mt? A metric ton?

8,000,000 troy ounces is about 248 metric tons.

Or did you mean 1,000,000 tons?

Total world supply is more like 100,000 to 200,000 tons, not 3,859,000,000 tons, nor 3,859 tons.

I saw the part in the wiki article where the World Gold Council estimated 2005 global supply to be 3,859 tons, but I confess I don't understand their logic. To me the word 'supply' means, how much is out there (above ground and refined). And they are clearly wrong given that definition. Perhaps they meant 'production', but that figure seems just a little high for that. Without further explanation of how they arrived at that figure, personally I tend to reject it. Perhaps they meant, how much came onto the market available for sale that year? In that case, 248 tons might actually make a difference.

But I agree if its 248 tons vs the 100,000+ already out there it isn't very significant.

Cup-of-Ruin
21st August 2009, 21:21
I recently sold all my shares and went 'all in' on a small Australian gold digger, known to be drilling into a big rich vein that would make them the most profitable gold mine in Australia, company report due in September, if gold begins to rally now, this could be one of those 'Eureka' moments!