Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Australian Gold Mine Production on Track to Fall By Half Over Next 25 Years

  by    0   0

Australian gold output will peak in just four years and then begin a steep decline, according to a report issued by a Melbourne-based industry adviser.

According to MinEx Consulting analysis reported by Bloomberg Business, Australian mine output will max out in 2021 and then fall by half into the mid-2050s, as aging mines close down.

A steep decline in Australia’s gold production will have a significant impact on world supply and lends credence to remarks made by the chairman of the World Gold Council during an interview at the Denver Gold Forum last month.

Randall Oliphant said he thinks the world may have reached peak gold. This means the amount of gold mined out of the earth will begin to shrink every year, rather than increase, as it has done pretty consistently since the 1970s. Oliphant said there are signs we’ve reached that point. In the near-term, he expects production to likely plateau at best, before slowly declining as demand rises, especially given global political risks and robust purchases by consumers in India and China

We’re not going to fall off a cliff in the near term, but in the same time it’s really hard to see how we’re going to produce enough gold to meet all this demand.”

Australia ranks as the world’s second-largest producer of gold. A steep falloff in production there would certainly push overall world output significantly lower, lending weight to peak gold speculations.

Recent production data also backs up the contention the world may have hit peak gold.  Mine production plateaued at 3,100 tons in 2016, equal to 2015’s output. And in the first half of this year, we saw sharp drops in mine output in both China and Australia, the world’s leading producers.

In 2016, Mining.com analyzed the data and concluded there are no more easy gold discoveries. In fact, the number of major gold discoveries continues to shrink. MarketWatch asserted that we’re heading for “an impending gold production cliff.” This seems to be the major issue facing Australian miners. According to Bloomberg Business, a steep drop in new discoveries as aging mines reach the end of their life is the key factor behind the predicted production dip.

The nation needs to act to boost future production from new discoveries, or risk ‘significant supply disruption in the medium-term,’ MinEx managing director Richard Schodde said in a study published Monday.”

When it comes to the gold market, most investors tend to focus on the latest economic news, geopolitical concerns, and central bank maneuverings. But it’s important not to forget the fundamentals – supply and demand. All of the signs point to shrinking supply in the future, even as demand increases. In fact, the gold industry may well be entering a long-term — and possibly irreversible — period of less available gold. As mining companies find it more difficult to pull gold out of the earth, it will mean less gold for refiners to produce for the consumer market. Remember, gold gets its value from its scarcity.

WhyBuyGoldNowBanner.070815.590

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

 

Photo by: Calistemon


Related Posts

Q2 Central Bank Gold Buying 73% Above 5-Year Average

Central banks globally added a net 199.2 tons of gold in the second quarter of 2021. That was the highest level of quarterly net purchases since Q2 2019 and 73% above the five-year quarterly average, according to data compiled by the World Gold Council.

READ MORE →

Does the Big GDP Miss Signal Looming Stagflation?

GDP for the second quarter disappointed, coming in at an annualized rate of 6.5%. Is this a sign of impending stagflation? While 6.5% growth looks good on the surface, economists polled by the Wall Street Journal expected annualized GDP to chart around 9.1%. This was a huge miss and indicates the economy isn’t growing nearly […]

READ MORE →

India Gold Market Shows Signs of Life as COVID Second Wave Eases

India ranks as the second-largest gold-consuming country in the world, second only behind China, but demand has languished for the last couple of years. The pandemic crushed demand, particularly for gold jewelry, but record-high gold prices in rupee terms and government policy put a drag on the gold market even before COVID-19. There were signs of […]

READ MORE →

Russia Goes to War With Inflation

While the Federal Reserve continues to downplay inflation in the US, insisting that it is “transitory,” the Bank of Russia has gone to war with rising prices. Bank of Russia Governor Elvira Nabiullina says she sees “persistent factors” to inflation, and on Friday, the Russian Central bank hiked interest rates by 100 basis points to […]

READ MORE →

If Inflation Is “Transitory” Why Is This Happening?

Federal Reserve Chairman Jerome Powell continues to insist the surge of rising prices is “transitory. But if this is true, why are inflation projections for 2022 rapidly rising? It seems the markets aren’t buying the transitory theme.

READ MORE →

Comments are closed.

Call Now