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

Mineable Gold May Be Gone in 20 Years

  by    3   0

A new report from Goldman Sachs warns that mineable reserves of rare commodities like gold may dwindle to extreme scarcity within two decades. This means that easily-mined gold is getting harder and harder to find. With less gold being pulled out of the earth, less gold is being refined and produced for consumers. In fact, 2015 may prove to be the peak year for gold production.

  • Peak gold discovery occurred in 1995 with 160 million ounces, which means that after 1995, less and less mineable gold has been found.
  • The rate of gold production tends to lag behind discovery by 20 years.
  • Therefore, as you can see in the chart below, gold production is likely to steadily taper off after this year.

15 04 02 20 year gold cycle


Given this data, the gold industry is about to enter a long-term — and possibly irreversible — period of less and less available gold. As mining companies find it harder to pull gold out of the earth, they will have less gold to pass along to refiners for the consumer market. Gold has always found its value in its scarcity, and that scarcity looks like it will only increase. As precious metals analyst Peter Grant puts it:

Peak gold is not a new concept at all… Mining output has been fairly flat for years, but new discoveries of gold have been falling rapidly… If we do reach peak gold in the near future, one would logically expect this to be broadly supportive to the price of gold for years to come.”

China and Russia appear to be the only exception to these trends — their gold production has increased. But we know that China exports very little gold and consumes astounding amounts of the yellow metal. Russia, too, has steadily added to its official gold reserves in the past year. If anything, Eastern countries like China and India are consuming far more of the world’s available gold than they are contributing, which could help extreme gold scarcity to come sooner than later.

Get Peter Schiff’s latest gold market analysis – 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

Singapore Adds Gold to Reserves for the First Time in Over 2 Decades

Singapore expanded its gold reserves by about 20% earlier this year, joining a growing number of countries increasing their investment in the yellow metal.

READ MORE →

Silver Demand Expected to Exceed 1 Billion Ounces in 2021

Every key area of silver demand is forecast to rise in 2021, according to the Silver Institute’s Interim Silver Market Review. The institute projects silver demand will come in at 1.029 billion ounces this year. That would mark the first year demand has exceeded 1 billion ounces since 2015.

READ MORE →

Jerome Powell 2.0

President Joe Biden has tapped Jerome Powell to serve a second term as chairman of the Federal Reserve. Biden said Powell’s “steady leadership” helped calm markets as governments shut down the economy due to coronavirus, and he expressed confidence in Powell’s future leadership. “I believe Jay is the right person to see us through,” Biden […]

READ MORE →

The Fed Pulled Off a Masterful Manipulation of the Junk Bond Market

The Federal Reserve pulled off a magnificent manipulation of the junk bond market, facilitated a massive wealth transfer from savers to speculators, pocketed millions of dollars, and then washed its hands of the matter. In March 2020, as governments shut down the economy for coronavirus, the Fed slashed interest rates and launched a massive quantitative […]

READ MORE →

Poland Plans to Add Another 100 Tons of Gold to Its Reserves

During a recent interview, Bank of Poland President Adam Glapiński said the central bank plans to add 100 tons of gold to its reserves in 2022. In 2018, the National Bank of Poland began aggressively adding gold to its reserves. Through the first half of 2019, the Polish central bank added more than 100 tons of […]

READ MORE →

3 thoughts on “Mineable Gold May Be Gone in 20 Years

  1. jrj90620 says:

    Hi,I read this same thing,about a week ago,at another website.There is one thing,I would be concerned with.We’ve read the stories about peak oil and gas.Then technology allowed companies to produce oil from great depths,under the ocean.Also,fracking came along and now there is a surplus of gas and more oil.I’ve read that there is a lot of gold under the ocean and at least one company is going to be producing.If technology allows more production from the ocean,there may be a lot more gold be produced in the future.Only question,is what it will cost to produce?

  2. Ron A says:

    As with all commodities, the incentive for production/supply is demand and profit. It may be true that much of the easier or lower mining cost gold has already been extracted. However, as long as the gold selling price appears likely to remain low in relation to the cost of production there is little incentive to invest significant capital in exploration for new deposits or to open new, or re-open old, mines with higher costs of production. I suspect, “Mineable Gold May be Gone in 20 Years” is rubbish. As with oil, there is likely a lot more gold underland & sea than has already been extracted to date. Only the incentive of sufficient profit will find and obtain it.

  3. […] is unlikely to shoot up to $33,000 anytime soon. However, the amount of gold being mined continues to shrink, while global debt continues to rise. Long-term investors know these fundamental facts provide a […]

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