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

How Much Gold Is There?

  by    0   1

How much gold is there in the world? Short answer: not much. That’s good news because gold’s value lies in its scarcity. After all, nobody picks up gravel off the ground and stores it in a safe. But if you find a gold nugget, you can take that to the bank – quite literally. Most people are vaguely aware that gold is scarce. But just how little there actually is might surprise you.

According to the World Gold Council, the best estimates suggest miners have pulled about 183,600 tons of gold out of the ground throughout history. That sounds like a lot. But if all of the gold ever mined was melted down into a giant cube, it would measure just 21.3 meters on each side, which translates to just under 70 feet. To put that into perspective, that’s about as tall as a seven-story building.

visual representation of how much gold is left in the world

To look at it another way, if you formed all of the gold ever mined into 400-ounce bars and stacked them on top of one another, the stack wouldn’t even reach to the of the Statue of Liberty’s waist.

The scarcity of gold takes on more significance when placed in the context of declining production. In fact, some analysts believe the world hit “peak gold” production in 2015 or 2016. Peak gold 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.

Last March, ZeroHedge called peak gold “the biggest story not being reported.” Mine production plateaued at 3,100 tons in 2016, equal to 2015’s output. This after a steady increase in output since the Great Recession.

In April 2015, Goldman Sachs analysts predicted gold production would peak in 2015, claiming 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.

In a nutshell, 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.

 

Get Peter Schiff’s latest gold market analysis 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!


Related Posts

Fed Runs Repo Operations; Is It Baby-Stepping Toward QE?

In a move “Bond King” Jeffrey Gundlach said could be a prelude to the next round of quantitative easing, the New York Fed conducted a repurchase operation involving about $53 billion in debt instruments on Tuesday. The move to designed to unplug the financial system’s “plumbing” with an injection of cash was the first such […]

READ MORE →

Another Month, Another Record for Consumer Debt

Americans continue to drive the economy along spending money they don’t have. Consumer debt increased yet again in July, setting another record, according to the latest data released by the Federal Reserve. Total consumer debt surged $23.4 billion in July, driven by a huge jump in credit card balances. The big rise in consumer indebtedness […]

READ MORE →

Budget Deficit Shoots Past $1 Trillion for Fiscal 2019

The federal government continues to spend money at an insane rate and is running up budget deficits reminiscent of the Great Recession era. With one month left to go, the federal budget deficit for fiscal year 2019 eclipsed $1 trillion in August, according to Treasury Department data released last Thursday.

READ MORE →

Corporations Piling Up Debt at Record Pace

Corporations are piling on the debt. Last week, companies borrowed $74 billion in the US investment-grade bond market. It was the largest corporate debt increase for any comparable period since they started tracking such things in 1972.

READ MORE →

Russia’s Gold Bet Paying Off; Reserves Top $100 Billion

As Bloomberg put it, Russia’s bet on gold looks better every month. The Russian Central Bank’s gold reserves have topped $100 billion thanks to continued buying and surging prices.

READ MORE →

Comments are closed.

Call Now