Califormia Gold Nugget
Califormia Gold Nugget Found
With the price of gold over $1600 an ounce, many believe a new California gold rush has begun. Does anyone really believe the gold miners of 1849 found all the gold there was? With modern technology and equipment it’s easier to discover gold and to recover gold at a cost that makes it profitable to do so.
Silver vein
Australian Gold Nugget
Huge 3 pound Australian gold nugget on display in Zurich, Switzerland.
Nuggets above one kilo are very, very difficult to find, and worldwide you can count them on one hand. An offer of three-quarters of million Swiss francs has been put forward for the nugget. That was four times the price of spot gold gold at the time.
The gallery owner said: “We want to show our customers how seldom something like this comes along. It’s something you don’t see every day. Such big pieces often end up in private hands, where they vanish forever.”
7 Pound Gold Nugget Found
This 7 pound gold nugget was found in an undisclosed location in Nevada County, CA in Feb 2010
Who ever said all the large gold nuggets have been found?
Yes, there are lots of gold nuggets still out there for the lucky gold prospector to locate!
Gold Investing and The Central Banks
Because high unemployment and collapsed home prices foster deflation, the continued debasement of the US currency through balance-sheet leverage makes it unattractive as a reserve asset. But what alternatives are available? The euro is in danger, and Japan’s government is warning that its national debt at 227% of GDP threatens an eventual sovereign crisis for the yen. There’s talk of Russia buying Canadian loonies and Aussie dollars, but those are tiny markets.
So the central banks appear to be accumulating gold, slowly and steadily, buying on declines, and nudging the price up as gradually as they can in order to reduce their average cost. That might be why we observe so little volatility in the gold price. The prospective buyers, namely the central banks, are so much larger than the gold market that they avoid actions which might cause price spikes.
