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Goldman Sachs: All the World’s Minable Gold Above Ground by 2038?

The Gold Telegraph  ( Original )
MAY 29, 2018

The only place they’re creating more gold is outer space (but boy, are they creating a lot of it out there!).

Man has been aggressively digging up gold for thousands of years, and the faceoff between pricing motivation and technological innovation is at a crossroads. There’s just not much more gold out there without incurring significantly more cost to explore in deeper and more dangerous areas.

There are three components at play: Demand is steady. Supply is finite and decreasing. The only variable in this equation that that can change easily is price.

Most of the world’s gold was mined before the 1848 Gold Rush era. Since 1950, 125,000 tons of gold has been processed, which is approximately two-thirds of all gold ever mined. All of the gold that could be accessed easily has been mined.

Gold cannot be manufactured or created. It can only be mined from the earth’s crust. If we want more gold, companies, and investors will need to begin allocating more capital to exploration companies.

According Eugene King of Goldman Sachs, known mineable gold reserve may be gone in 20 years. The definitive word here is “known.” Gold mining companies are gearing up for a new era of exploration deeper below the surface than ever before. This means these companies will be incurring new costs at the same time their profits are decreasing. That is the reason why so few new mines are being excavated and few new projects are being started.

The earth’s easy-to-find gold has already been found and mined. There will not be another California Gold Rush. The search for new gold becomes increasingly challenging and expensive each year. Outdated equipment and technology need to be replaced.

ORIGINAL SOURCE: Gold Production On The Cusp of Peaking by Tom Lewis at The Gold Telegraph on 5/28/18