The Gold Telegraph
MAR 15, 2018
Demand ramping for gold in the face of global financial crises is a predictable eventuality. Another gold price spike factor not being anticipated as widely is the projected reduction in mining-sourced gold supply for the next several years, at least.
Following the recent market crash, investors lost $5.2 trillion worldwide before the market managed to recover most of the losses. There are hints that certain bubbles are ready to burst as the worlds biggest hedge fund positions accordingly.
In addition to the stock market, the global gold supply is weakening, leaving investors anticipating higher prices. In 2017, the gold supply plummeted the most since any year since 2008. If the supply of gold is really plateauing, experts are predicting a “peak gold” period.
China, the world’s largest miner of gold, produced 453 tons of the metal in 2016. In 2017, China’s production fell by 9 percent.
Once productive and seemingly endless gold deposits are depleting quickly. Forty percent of all the gold mined throughout history has come from the Witwatersrand Basin in South Africa. In 2017, Witwatersrand Basin’s gold production fell 83 percent compared to 1970, down to 167.1 tons.