Siberian Gold Find Brightens Ruble’s Future

WSJ ^ | 7 Feb 2019 | Thomas Grove

[DUMBGRUNT]

“This is the Holy Grail of gold mining effectively, given the quality and given the scale,”

The news is good for both Polyus and the Russian government. Unlike other producers that move their bullion on world markets, Polyus sells its gold exclusively to large Russian state banks, which then resell it to the country’s central bank. Once mining begins, the bank can use the mine’s gold to support its ruble currency or sell it for extra foreign currency in times of crisis.

According to Polyus, Sukhoi Log is likely to be producing more than 1.6 million ounces of gold every year for more than 35 years, one of the longest lifespans of any mine globally.

[DUMBGRUNT]

No news of any Wild Indian, crazed Eskimos, Earth First... Protests??

Mongol horde? That would make Vlad think twice??? Or maybe not.

It is honest work and I wish them well.

[DUMBGRUNT]

From comments at the site:

How much storage space does 63 million ozs of gold take up vs its equivalent in barrels of oil at today’s price?

It would be a 16 foot cube.

If you have 8 foot ceilings in your basement, it would take up about a 20’ x 25’ footprint down there.

It’s worth $82B at today’s price. (Obviously it will cost money to mine it, though.)

That’s equivalent to 1.3B barrels of brent crude today.

Russia is producing 11M barrels per day right now. So this gold is the equivalent of 120 days of oil production, or roughly 4 months.

[BipolarBob]

(Obviously it will cost money to mine it, though.)

Not as much as here . . . by a long shot.

[Vermont Lt]

They will go in a drench the ground with acid, grind up all of the ore, and dump it into the biggest rivers around.

And I am confident that the complaints will be minimal.

[allendale]

World gold production is at a record high. Yet the price keeps increasing. Hmmmm……..

[Red Badger]

Was Todd Hoffman there?.................

[DUMBGRUNT]

They will go in a drench the ground with acid, grind up all of the ore, and dump it into the biggest rivers around.

Sounds expensive?

The cyanide process would be more cost effective.

[DesertRhino]

And central banks everywhere seem to want to get their hands on it. China is hoarding, all of Asia is. The Germans wanted their back from NY Fed and we dragged our feet.

And all these same bankers explain to us that nobody should be buying gold...but they all do.

[DUMBGRUNT]

Was Todd Hoffman there?......

HAS anybody seen him lately?

Is that him on the back of the bitcoin packages?

[DUMBGRUNT]

Last year, the central bank’s deputy head, Dmitry Tulin, told lawmakers that while gold prices may fluctuate, “it’s a 100% guarantee against legal and political risks.” Russia is hardly alone in making that observation. Globally central banks have markedly increased their purchases of gold over the last decade. Last year saw the biggest buying by central banks since 2015 as more developing countries worked to increase their reserves. Russia’s central bank likely bought around 270 tons of gold, more than a third of global purchases, making it by far the world’s biggest buyer of the metal, according to Junlu Liang, a senior analyst at Metals Focus, a London-based consulting firm. “Russia will likely remain a major gold buyer given mine production that helps it buy on the domestic market,” she said.

[Vermont Lt]

It is. I was considering all of the nasty ways to get gold. I forgot mercury.

It’s not Gold Rush.

[Red Badger]

According to Wiki, they have retired...................

[Red Badger]

https://en.wikipedia.org/wiki/Gold_Rush_(TV_series)

[Teacher317]

$82 billion is certainly a nice find...

but let's compare that to what our government spends on a daily basis: $4.4 Trillion divided by 365 days is $12 billion per day...

So this magnificent and world's largest and amazing and wonderful 35-year find would only finance DCs spending of our confiscated money for... a week.

[wastoute]

Just leach mercury in the ground and drill it up. Rinse with acid and repeat. What could go wrong?

[DUMBGRUNT]

So this magnificent and world’s largest and amazing and wonderful 35-year find would only finance DCs spending of our confiscated money for... a week.

I was having a nice day, until reading your calculations!

[Windflier]

"Globally central banks have markedly increased their purchases of gold over the last decade. Last year saw the biggest buying by central banks since 2015 as more developing countries worked to increase their reserves."

Thus bolstering the view that precious metals are the only real money.

[ckilmer]

The biggest gold bugs outside of Russia will be camped out at RNX.TO until april.

[Windflier]

$82 billion is certainly a nice find... but let's compare that to what our government spends on a daily basis: $4.4 Trillion divided by 365 days is $12 billion per day...

Yet Congress can't see fit to give our president less than half of one day's federal spending to fund an entire year's worth of construction on the southern border wall.

We should already be in a state of revolt over this.