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

Gold Scarcity in Perspective as “Peak Gold” Looms

  by    0   0

Of course, gold’s value lies in its scarcity.

But just how scarce is it, really? We all have a vague idea, but you will probably still find the reality quite shocking.

A series of 12 stunning visualizations of gold published by Visual Capitalists puts the rarity of gold into vivid perspective.

Demonocracy.info put together this series of 3D visualizations showcasing all of the world’s gold mined thus far using gold bullion bars. (Note: these visualizations are a couple of years old and optimistically have the value of gold pegged at $2,000 per ounce, presumably for the ease of calculations.)

gold-in-world-cube


If you stack all of the gold mined in history in the form of 400 ounce bars, it wouldn’t even reach to the of the Statue of Liberty’s waist. Melted down, it would fit into an Olympic-sized swimming pool.

Demonocracy.info put together similar visualizations for silver.

silver amounts

The scarcity of gold takes on greater significance considering we are likely nearing “peak gold.” In other words, the amount of gold mined out of the earth will begin to shrink every year, rather than increase, as it has since the 1970s.

Last year, Goldcorp CEO Chuck Jeannes announced the world will reach “peak gold” in 2014 or 2015.

As gold production declines, the miner’s job becomes harder, as companies compete for increasingly rare deposits. Discoveries have already tapered off. In 1995, 22 gold deposits with at least two million ounces of gold each were discovered, according to SNL Metals Economics Group. In 2010, there were six such discoveries, and in 2011 there was one. In 2012: nothing.”

Just last April, Goldman Sachs analysts predicted gold production would peak in 2015, saying there are “only 20 years of known mineable reserves of gold and diamonds.” The report warned that mineable reserves of rare commodities like gold may dwindle to extreme scarcity within two decades, meaning easily mined gold will continue to get harder and harder to find.

And as we reported last week, with many mining companies in the red, analysts expect gold production to drop for the first time since 2008.

Given all of this data, it appears the gold industry will soon enter 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. Gold finds its value in its scarcity, and that scarcity looks like it will only increase.

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 more about physical gold and silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Despite Record Receipts Uncle Sam Still Ran a Budget Deficit in December

Despite a monthly record in receipts to the US Treasury, the federal government still managed to run a deficit in December. That’s because the federal government also broke a monthly spending record.

READ MORE →

Heads You Lose; Tails You Lose

The Fed has a difficult choice to make. Will it crash the economy? Or will it crash the dollar? Whichever way this coin flip turns out — you lose.

READ MORE →

2021 Silver Demand Expected to Break Record and Other Silver News

Silver demand is expected to chart a new record high in 2021 with every key area showing an increase based on preliminary data. This is one of several silver-related stories covered in the latest edition of Silver News published by the Silver Institute.

READ MORE →

Could Gold Help Us Find Space Aliens?

Gold may be the key to finding space aliens! After years of development, the James Webb Space Telescope (JWST) was launched into space on Christmas day.

READ MORE →

Biden Signs Massive Military Spending Bill – How Will They Pay for It?

President Joe Biden’s “build back better” spending bill seems to be dead — at least for the time being. But there is still plenty of spending coming down the pike. This raises an important question: how is the Federal Reserve going to simultaneously taper its bond-buying program and monetize all of this debt? On Monday, […]

READ MORE →

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Call Now