Gold exists today in gold coins, gold bullion (bars of gold), gold jewelry and other refined gold uses including edible gold. Gold also continues to be mined in various parts of the world.
Currently, the market price per ounce of gold increases almost daily.
One of Britain’s news outlets, the Telegraph, included articles about the source of gold ore and the price of gold. Both of these articles provide additional insights into the rise of the gold prices.
In the first article, Aaron Regent, president of the largest gold production company – Barrick Gold, stated, “”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.”
The article went on to discuss how the ore quality has decreased significantly in grams per ton since 1950. In other words, it takes a lot more tonnage of ore to obtain the same amount of refined gold.
Click here: Barrick shuts hedge book as world gold supply runs out to find the article on the telegraph.co.uk web site.
In a companion article, the Telegraph interviews several analysts from various investment and economic backgrounds. Some think gold has almost reached its peak price. Others think it will continue to rise.
Click here: Gold: how high can the price go? to view the various opinions. And, that’s what they are – opinions.
Rather than separate, the two articles should be read together. It seems the opinions are based more on the economy rather than including the diminishing supply issue.
When the supply gets scarce, the price will go up. When will the supply get that scarce and when will the demand push the rate up? That remains to be seen.
But, alchemists of old learned they could not create gold from other substances. Even with today’s technology, we can’t either. The best we can do, perhaps, is use technology to help us find the sources of gold ore.