Economic News

Consensus is growing even in the mainstream that the world has reached Peak Gold

Alternative media analysts like Steve St. Angelo have done wonderful research on the precious metals over the past several years, and have invariably come to the conclusion that it is likely the world has reached the point of Peak Gold discovery and production.  But perhaps of a more interesting note, these same conclusions are starting to come from mainsteam analysts such as that of Goldcorp and Goldman Sachs.

According Eugene King of Goldman Sachs, known mineable gold reserve may be gone in 20 years. The definitive word here is “known.” Gold mining companies are gearing up for a new era of exploration deeper below the surface than ever before. This means these companies will be incurring new costs at the same time their profits are decreasing. That is the reason why so few new mines are being excavated and few new projects are being started. 

The earth’s easy-to-find gold has already been found and mined. There will not be another California Gold Rush. The search for new gold becomes increasingly challenging and expensive each year. Outdated equipment and technology need to be replaced. 

Ian Telfer,Chairman of Goldcorp., indicates we have reached “peak gold” as he states, “We’ve found it all.” He anticipates future gold production to be lower than in the past. He sees all future gold mining as going as a downhill venture. Mr. Telfer believes there is a good possibility that all major sources of gold have already been found and mined. New grades being extracted are declining in value. He predicts this situation could drive the price of gold up to $1,600 by the end of the year from its current price of around $1,300. – Gold Telegraph

Source: thedailyeconomist.com

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