The reality of peak gold production has recently been acknowledged by Bloomberg and some of the financial media. Yet the mainstream, non specialist financial media has yet to cover this important topic with obvious ramifications for the gold market and the gold price in the medium and long term.
Peak gold production is happening globally which is very positive for gold and gold mining shares. Bloomberg have again covered this important fundamental factor in the market and have done so with an article and five must see gold charts:
“Gold’s had a roller-coaster year, surging as much as 30% before giving up the bulk of those gains. But one trend has been consistent: mining companies are finding it harder to dig up more of the precious metal."
The following charts show why, and what that means for the industry.
We first covered the peak gold phenomenon back in 2007 and 2008 (see here) and have considered peak gold frequently over the years. ‘Peak Gold’ is happening which has important ramifications for the gold market and is a long term positive for the market which will support prices and should lead to higher prices.