Wednesday, November 11, 2009

Peak Gold

clipped from

Aaron Regent, president of the Canadian gold giant, said that global output
has been falling by roughly 1m ounces a year since the start of the decade.
Total mine supply has dropped by 10pc as ore quality erodes, implying that
the roaring bull market of the last eight years may have further to run.

"There is a strong case to be made that we are already at 'peak gold',"
he told The Daily Telegraph at the RBC's annual gold conference in

"Production peaked around 2000 and it has been in decline ever since, and
we forecast that decline to continue. It is increasingly difficult to find
ore," he said.

Ore grades have fallen from around 12 grams per tonne in 1950 to nearer 3
grams in the US, Canada, and Australia. South Africa's output has halved
since peaking in 1970.

The supply crunch has helped push gold to an all-time high, reaching $1,118 an
ounce at one stage yesterday.