David Kirkpatrick

November 11, 2009

More rejoicing for gold bugs

Filed under: Business — Tags: , , , , — David Kirkpatrick @ 9:23 pm

The world may have hit “peak gold.”

From the link:

“There is a strong case to be made that we are already at ‘peak gold’,” he toldThe Daily Telegraph at the RBC’s annual gold conference in London.

“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. The key driver over recent days has been the move by India’s central bank to soak 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.

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