Why Peak Gold Is Considered Fake News

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Written by Mike Hammer

The debate about peak gold wages on.  We’ve talked about it before; basically, peak gold is the idea that production of new gold is at or near its peak, and should decline from here. There are plenty of folks on both sides of the discussion.  Peak gold believers say there are no more easily accessible large deposits of gold out there, so total gold production has to drop. Disbelievers point at the success of junior- and middle-tier miners and say there’s still plenty of gold, the big guys have simply gotten too big/lazy/stuck in their ways.

To any parent, this will sound just like your teenager talking to you…  Today’s featured article is a very good presentation of the argument of the “not peak gold yet” point of view. Note the total amount of gold produced by year (in the article) and see if you think we’re at peak gold right now.  Or if we can even say we’re at peak gold yet.  Then leave your thoughts in the Comments below.

Continue reading at GoldSeek.com

 

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated with a business degree, then worked with Macy's. After Macy's he 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 a well-known financial planning firm 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 he worked first for a small manufacturing consulting company, then a major 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, spoken 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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2 Comments

  • Very interesting read (article on gold production over the century) and the analysis ie. “fake news”
    The primary facts about gold ores, as I understand it….#1 availability (geological analysis), #2 cost of extraction, #3 volume and longevity (predictability via engineering and geology), makes the mining game a very challenging one. Also, throw in environmental and political issues….as well as the fiscal managing team, which, in today’s world requires sound stewardship and creative thinking.

    In summary….I believe that global production will go flat and will gradually diminish. This will continue until the price of gold will challenge and overcome the cost of producing it by a significant
    margin.
    At present… it appears that most of the big miners are showing negative accounting and are relying on their infrastructure, ore deposits and the hedge streamers to cover their butts.

    • I agree with your point of view. The one thing I’d point out is that most miners have ASIC (all-in sustaining costs) well below the current market price, so they “should” be making money hand over fist. Why they’re not (for those who aren’t) is a great question to ask the management at less-profitable miners… Thanks for your comment! – The Gold Enthusiast