World Gold Supply Runs Out

I’m not sure I really believe this, but the Telegraph is one of the more serious UK newspapers:

Global gold production is in terminal decline despite record prices and Herculean efforts by mining companies to discover fresh sources of ore in remote spots, according to the world’s top producer Barrick Gold.

Aaron Regent, president of the Canadian gold giant, said that global output has been falling by roughly 1m ounces a year since the start of the decade. Total mine supply has dropped by 10pc as ore quality erodes, implying that the roaring bull market of the last eight years may have further to run.

“There is a strong case to be made that we are already at ‘peak gold’,” he told The Daily Telegraph at the RBC’s annual gold conference in London.

“Production peaked around 2000 and it has been in decline ever since, and we forecast that decline to continue. It is increasingly difficult to find ore,” he said.

Ore grades have fallen from around 12 grams per tonne in 1950 to nearer 3 grams in the US, Canada, and Australia. South Africa’s output has halved since peaking in 1970.

[continues in the Telegraph]


Majestic is gadfly emeritus.

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5 Comments on "World Gold Supply Runs Out"

  1. i wonder why people in the gold business want people to think gold is running out,
    wouldn't drive the price up or anything

  2. I'm blaming the rappers of the world for this…

  3. emperorreagan | Nov 13, 2009 at 12:07 pm |

    They just don't want the world to know that the earth is really hollow and baby Jesus sits at its center, magically conjuring up all of the materials that humans request.

  4. tonyviner | Nov 14, 2009 at 11:07 am |

    I can't believe that gold is still a driving force in the world economy. It seems so medieval, it has no real practical applications, other than the fact that it looks nice. We have come so far but most of the time it seems like we are still stuck in the Stone Age.

  5. Rollotomazi | Aug 30, 2010 at 3:48 pm |

    Here is something I came across the other day to what is going on in the world, link below if I'm allowed,

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