Gold Supply: Why We’re Not at Peak Gold Yet

Yesterday we mentioned our opinion that peak gold might not be here yet.  There are many factors that result in increases to the gold supply going up or down in any given year, from physical (actual mining) to political (allowing miners to mine) to accounting (counting what was mined).

Metals Focus from London released their report of 2017 gold production yesterday, which is interesting as they try to account for some of these discrepancies. They reported that total gold actually mined worldwide probably rose 0.5% in 2017, which goes against claims that we’re at peak gold now. Or at least, it suggests we’re not on the downhill side of peak gold.

The report notes that China reported a drop of almost 8% in gold production. That’s huge because China is the biggest gold mining country in the world right now. So the rest of the world made all that up, plus some. And, since production was down in South Africa, that had to be made up as well. The idea that the rest of the world could more than make up these significant drops tells us that gold mining may yet have some legs.  The report also notes that total gold supply fell 141 tonnes, due to a drop in recycled gold.

You can read more about the report in today’s featured article here.  The report is not free; if you’re interested in buying a copy, visit Metals Focus’ website. Disclaimer: The Gold Enthusiast is not affiliated with Metals Focus, and receives no compensation for pointing you at their website.

 Related: Learn What Goldman Sachs Has to Say About Gold Now.

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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