September Silver Eagle sales updated today at 1,961,000 oz. If we keep up with this pace, we may see the highest month of sales for they year (not including Jan).
For the OFFICIAL MOVEMENT of GOLD out of the United States, June was a record export month. Here is the data:
(based on ore & concentrates, dore’ & precipitates and refined bullion)
2011 TOTAL GOLD EXPORTS = 474 tonnes
2012 TOTAL JAN-JUN EXPORTS= 379 tonnes
JUN EXPORTS 2012 = 77.5 tonnes (a whopper of a month)
2011 TOTAL GOLD IMPORTS = 507 tonnes
2012 TOTAL JAN-JUN IMPORTS= 160 tonnes ( at this rate, its down 63% since last year)
US GOLD PRODUCTION DOWN 3% FIRST 6 MONTHS 2012
However, Nevada’s gold production is actually up a few points.
A WORD ON PEAK GOLD PRODUCTION
Someone commented in my guest post that I only focused my report on the top 5 gold companies who have shown a 5% decline of production in the past 6 years. I would like to remind the person who commented as well as any other skeptics (yes, skeptics are welcome), that OVERALL… let me repeat that… OVERALL, ore grades are falling E-V-E-R-Y-W-H-E-R-E.
The only reason why we had more total world production in 2011 is due to the huge amount of new mines that came online. Furthermore, if we do take a conservative 3% decline rate in ore grades for the world gold mines, that means at 88 million oz production (per 2011), the world has to add 2.6 million oz each year at that rate to keep production flat.
They can do this two ways:
1) add more mines
2) increase the amount of processed ore
either way, they need to consume more energy just to STAY FLAT..
I plan on writing an article on just this subject.
INCREASING WORLD GOLD PRODUCTION WILL BE A BEE-OTCH
Here’s something some may have not considered. As I stated in my previous post, as ore grades decline (actually the annual gold yield), the addition of more mines as wells as an increase in processed ore are necessary to keep production flat.
In 2011, the world produced 88 million oz of gold. The conservative annual decline in gold yield is about 3%…. thus, we need 2.6 million oz each year to keep production at 88 million. Now let’s say we get a whole bunch of new mines come in in 2012-2013. Thus, the world may hit production of 95 million oz of gold by 2012-2014. At this time, we can assume the annual gold yield will have fallen to 3.5% per annum.
So… for the world to keep production flat at 95 million oz a year with a decline of 3.5% annual gold yield, the world now has to produced 3.3 million oz more each year to keep production flat.
This is the INSIDIOUS aspect of growing production to such high levels. The higher world gold production goes, the faster the annual decline rate in gold yield and the more gold production is needed to keep it production flat.
This, I believe most people do not realize.