Gold discoveries from 1990 to 2011 have replaced only 56% of the gold mined during that same period - Metals Economic GroupThink about that statistic for a minute in the context of the fact that over the last two years eastern hemisphere Central Banks have been accumulating collectively more than half of the mined supply of gold in those two year. China and India combined account for about 50% of the mined supply over the last two years, and that assumes the published numbers from China are accountable. Most observers are certain China understates its published import numbers for gold (I can't imagine any Government not telling the truth).
The past couple of weeks have left many precious metals investors bordering on terrified. The good news is that, based on long term sentiment indicators which have proved to be 100% accurate buy signals over the last 12 years, this price correction is largely over:
My view is that the precious metals and mining stock sector is forming a big bottom and is getting ready to start a move that ultimately will culminate with new highs for gold, silver, and the mining stock indices. I would be so bold as to say that next to October 2008 and early 2001, this is probably the single best entry point that investors will get during the course of the precious metals bull market.You can read that entire commentary and see some incredible charts that show just how dismal the investor sentiment with regard to the precious metals has become here: Extreme Capitulation