Gold Supply: A Look at Russia’s New Mine

Even when a sector has dropped as much as gold, it’s important to remember that it won’t just go away. According to economic theory, the cure for low prices is low prices – this means when something gets cheap enough, someone steps in to buy it. With that in mind, our gold supply should be in good hands. 

When gold prices drop – keeping in mind their long history of value – you know it’s just a matter of time before the buyers step in. Russia’s Polymetal announced that they’d poured their first bar of gold on June 25th from their northern Kazakhstan project a full quarter ahead of schedule. This mine is expected to produce 80,000 oz of gold this year and 280,000 oz in 2019 – that’s 8.7 tonnes for you central banker-types out there. 

Russia’s central bank has been buying most of the gold produced in Russia over the past several years and we expect this trend to continue. This new mine gives them the chance to buy more gold easily if they want it. You can read all about it, and Polymetal’s next big project or two, in today’s featured article.

 Related: Is a Gold “Death Cross” Imminent? Here’s What You Need to Know. 

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated with a business degree, then worked with Macy's. After Macy's he spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined a well-known financial planning firm as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where he worked first for a small manufacturing consulting company, then a major university. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoken at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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