Peak Gold Production?

Global gold production is in terminal decline despite record prices and herculean efforts by mining companies to discover fresh sources…

 

…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…

 

…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.

 

…India's central bank [recently purchased] up half of the gold being sold by the International Monetary Fund. It is the latest sign that the rising powers of Asia and the commodity bloc are growing wary of Western paper money and debt.

 

China has quietly doubled holdings to 1,054 tonnes …

 

...exploration budgets tripled since the start of the decade with stubbornly disappointing results so far.

 

Output fell a further 14pc in South Africa last year…

 

Ambrose Evans-Pritchard

http://www.telegraph.co.uk, 11 Nov 2009