Chile Forum

eeuunikkeiexpat wrote:TOP!

Many of the happiest people I have met in my life
have their passport from one country ,
residency in another ,
and money/gold in a third .
--- David Galland, Casey Research

...about the gold use in tablet computers and e-readers, it’s important to keep in mind that the amount of gold used in these chips is small – about 50 milligrams, so it’s not like the devices are going to alter the supply/demand landscape immediately.
...while the typical mobile phone currently contains up to 50 mg of gold, which doesn’t sound like much gold, the number of devices globally makes even this small number add up quickly. “With upwards of 1 billion mobile devices manufactured a year that creates 50 (metric tons) of gold demand per annum and that’s just mobile devices. When you add in all the other consumer electronics devices, including PCs, laptops, gaming, not to mention automotive electronics and other categories, it’s perhaps not surprising that electronics industry demand for gold can exceed 300 tons per year,”
With gold prices hitting all-time nominal highs - just Tuesday it traded over $1,270 an ounce – chip makers could look for substitutions for the metal or ways to use less. Recycling of e-waste is growing, too, which means more gold could come back to be reused. But ...there are limits to those possibilities.

Canada's Mandalay Resources Corp has started operations at its Cerro Bayo silver-gold mine in Chile.
The mine, acquired by Mandalay in August, is expected to produce 12,000oz of gold and 1.89 million ounces of silver in 2011.
Cerro Bayo is expected to achieve full production in the third quarter of 2011 with an annual saleable output of about 20,000–25,000oz of gold and up to three million ounces of silver.
Cerro Bayo mining operations had been suspended since October 2008 due to maintenance.

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Ahead of the Fed meeting, most analysts said they did not expect quantitative easing as soon as Tuesday, with policy-makers instead likely to wait to see whether there is more significant deterioration in the economy. Thus, many had expected that the lack of a quantitative-easing announcement might have led to some profit-taking that would have pressured gold, rather than the price rise that occurred.
There was profit-taking, but this seemed to have already run its course in the run-up to the FOMC statement,

As most expected, the Fed did not undertake quantitative easing, in which it would buy debt instruments such as Treasury bonds to help push down long-term yields. However, the Fed language was construed to mean this is a distinct possibility down the road, supporting gold prices.

“The FOMC will continue to monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery and return inflation, over time, to levels consistent with its mandate,” the statement said.

This demonstrated a bias toward easing... “Unless the incoming data improves significantly, we believe a resumption of (quantitative easing) at the November FOMC meeting is now quite likely,” .

Regardless of what the Fed does with quantitative easing, gold is likely to remain in an uptrend as long as policy-setters leave interest rates essentially at zero...

Whenever the Federal Reserve does hike rates, “it’s not going to be pretty,” ... “But the Fed’s not going to raise rates for at least a year or two. Do we go to $1,500 first? Probably.”

“That’s extremely weak for the dollar and very strong for gold, as you saw a big spike up through $1,290. I think we see $1,300 before the week is out and I am still thinking of $1,400 to $1,500 by year-end.”