Dec
3
Exclusive – Mark Cutifani CEO of $16B AngloGold Ashanti: “Major Buyers Are Finding It’s Hard To Get Physical Gold”
December 3, 2011 | By Tekoa Da Silva | 9 Comments
I had the great pleasure this week to speak with Mark Cutifani, CEO of $16B AngloGold Ashanti, and it was an incredibly fun interview to say the least. Mark has been in the commodities business for decades, and was COO at CVRD Inco., before it became “Vale”, now valued at $119B. Given Mark’s global commodities background & network depth, his insights into the commodities & precious metals markets are razor sharp, and quite telling of the global picture.
Wh
at I thought was the most fascinating of Mark’s comments during the interview, was his observations of major gold buyers emerging from the Middle East & Asia. “People are coming directly to us,” for large gold purchases he said. “People who want tonnes of physical gold, people with serious financial muscle…because they’re finding it’s very difficult to secure the volume of gold they want…That’s something we’ve noticed over the last 18 months, and it’s been increasing in the last 6 months. I think people are finding its hard to get physical gold.”
Additionally, a major challenge facing the world going forward according to Mark, is that, “The world is short water, energy, & commodities…we’ve under-invested in our natural resources as a society…and as a consequence, we’ll see higher prices around the globe.”
This was one of the most powerful and exciting interviews I’ve had the opportunity to take part in, and I consider it a “must-listen” for gold, silver & natural resource investors.
To listen to the interview, left click the following link and/or right click and “save target as” or “save link as” to to your desktop:
Interview also available on our YouTube Channel
To get in touch with Mark or learn more about AngloGold visit: AngloGold Ashanti
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Thanks,
Tekoa
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But if physical gold and silver are in such short supply, and demand is so high, why isn’t the price of both significantly higher? We’ve been stuck around 1800 on gold and 35 on silver for a while now. If the answer is because of JP Morgan’s, et al, manipulation of the market, how much longer can that go unanswered? Depressing.
I wouldn’t be depressed by it. When time runs out, the price will go vertical. Just work as hard as you can, and keep accumulating and preparing.
Best,
Tekoa
Steve Lucas the reason is quite simple.
The banks and governments don’t want gold or silver to be too expensive. Therefore they short gold and silver all the time more or less to fiddle the price and keep it from looking too good relative to their unbacked fiat currencies. It is pure skullduggery at its worst. Also it matters not if there be one ounce of metal available or no ounces or infinite ounces. They short the metal even if they have to naked short the gold and silver.
If you ever do find metal to buy pay cash and take delivery and never ever store it in a institution that could possibly lend the metal.
From now on allocated and unallocated should be considered to be a distiction with out a difference particularly in the light of Gerald Celente’s recent experience. Keep it squirreled away and secret.
the price is heavily manipulated on the futures exchange by the top banks and the fed. Naked shorting in large volume out weighing any relationship to the physical availability is allowed by the CTFC and the CME. This could bring the CME down if physical is demanded and someone with courage outlaws them
As said, as long as the price is where it is there’s just two things to do.
Say thank you very much to the manipulators and hord the shiny stuff.
Thanks for the article.
Here is the problem with all this speculation about shortages. Go to any website that advertises gold and silver and you can buy all of it you want. And there are literally hundreds of these sites.
If gold and silver are in such a critical state of scarcity, how come it is so easy to come by at close to spot?
Someone explain that to me.
the shortages twinbeech, are occurring in the high-volume end of the market, for example sovereign wealth funds, hedge funds, high-net worth individual investors, etc. Kyle Bass recently took delivery of over $1B in physical gold bullion from the COMEX, and it equated to about 50% of their entire warehouse inventory.
So the challenge is for buyers that need to fill orders of multiple billion dollars in volume…how do they do that without pushing up the price violently. As you pointed out, there is zero shortage currently, for the guy calling an online broker looking for 50-1000+ 1oz. gold coins or bars.
At some point that dynamic for small buyers may change.
I know that this is irrelevant to the topic at hand but I dont like the name of this guys company. It just reminds me of the days when all the Europeans(ANGLO-Saxons) robbed and pilliaged Africa(the Ashanti tribe) for her jewels and gold in order to develop their own economies. SMH
If as suggested by Mark “The buyers are coming to us for gold”, why then do you not offer parcels of some tons outside your normal selling venue? why not have an “Auction of X tons, or “Sale of X tons by Expression of Interest” Immediate delivery and make the price public with purchaser privacy as a condition of sale.
David J
Melbourne