Most of us are aware that the gold mining world is getting smaller and smaller. There are over 30 bankrupt mines in Nevada and over 1400 people within this state have lost their jobs in this industry in the last twelve months. State and county tax revenues have also decreased accordingly. Three years of falling gold prices is taking its toll. Production is falling.
New projects are on hold.
Even some mining companies have succumbed to dubious accounting practices when it comes to reporting cash costs and reserve valuations. But this is the New Economic Age, so I guess anybody can play. Now the WGC, for those of you who don't know, gets the majority of its funding from mining companies and in essence is a spokesperson for the gold mining industry. The name of the World Gold Council is itself misleading by virtue of the fact that it sounds extremely official, as of it were similar to the World Bank or the United Nations or the International Monetary Fund. It's a bit like Mr. God appearing in Rome and saying he agrees with the Pope.