Global Gold Mining Supply and Production has reached a Peak
J.S. MindSet released an interesting article on January 23 that caught my attention, as it should catch yours too.
If you would like to read the article yourself, which I would suggest, here is the link.
https://www.jsmineset.com/2018/01/23/mining-supply/
Here is a summary of the article which I found most interesting which would support his claim that gold production in the future will decrease, unless the price of gold rises significantly, to overcome the high cost and challenges to producing metal for a profit.
Just because you see gold jeweler in your local store doesn't mean it is plentiful
- The actual deposits are located in distant and hostile locations on the planet
- Typically, in location with no existing roads, lots of bandits and greedy thieves in the form of bureaucrats.
- The bureaucrats seeking cash pay offs allowing your equipment and materials through customs.
- Cash payoffs are commonly called shake-downs.
- Warm climates with every lethal disease known to man exists, Colder climates, miners risk freezing to death.Cost of mining, independent third party verification and attesting to every aspect of the gold production.
The bureaucracies which regulate the mining industry are enormous.
- Rules are maddening
- Delays are torturous
- Reporting is vast
- Compliance are rigid
- Pace is dreadfully slow
- Everything must be lawfully and honestly done, without falling to corruption to the bureaucrats.The price of gold will grows higher than $5000/ ounce for potential mining operations to be profitable.
Until the $5000/ ounce price of gold is a reality, do not expect seeing gold reaching the market from mining supply.
The diminishing gold being mined will cause the price of gold to skyrocket.
- See charts above, gold mined in 2018 may be half of what was mined in 2017.
In summary, Keep stacking. Go get you some.
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