Sounds a lot like the talk about Peak Oil several years which never paned out. It takes a couple of years at higher to ramp up production. The price of gold is highly manipulated. The amount recoverable is depended on the price just like oil.
I am not disagreeing that the price of gold going higher but not think this argument should be used.
P.S. And of course, “peak gold” in the strictest sense is nonsense. There’s gold in seawater. We’re not going to run out of the stuff. It’s ultimately a question of economics and technology. What we’re really talking about here is peak mine production based on known deposits, conventional mining methods, and what can economically be brought into production in the foreseeable future.
Yeah, that was my thinking too. But then when you look at the data represented by the charts I used in the essay, it kind of makes sense. The decline in the size and number of major discoveries in particular is pretty striking.
both of you are exactly correct. "peak" gold means the price is not high enough to justify extracting it (from the ground or scrap jewelry or coatings on spacecraft). Every country wants it because confidence in USD fiat is low and falling towards zero. My suspicion is Trump will revalue gold from $42/oz to some really large number, thereby opening up extraction a bit more.
Thanks for letting us know that known reserves are shrinking. I didn't realize that was widespread; thought it was just a natural outcome for individual mines, as they dig it up, until they find more reserves.
I don't understand "Every deal that closes takes another buildable project off the market. Which makes the ones still standing that much more valuable."
Why buy a small mining company if not to continue the project and thus increase your dwindling reserves?
Sounds a lot like the talk about Peak Oil several years which never paned out. It takes a couple of years at higher to ramp up production. The price of gold is highly manipulated. The amount recoverable is depended on the price just like oil.
I am not disagreeing that the price of gold going higher but not think this argument should be used.
Henry
P.S. And of course, “peak gold” in the strictest sense is nonsense. There’s gold in seawater. We’re not going to run out of the stuff. It’s ultimately a question of economics and technology. What we’re really talking about here is peak mine production based on known deposits, conventional mining methods, and what can economically be brought into production in the foreseeable future.
Yeah, that was my thinking too. But then when you look at the data represented by the charts I used in the essay, it kind of makes sense. The decline in the size and number of major discoveries in particular is pretty striking.
both of you are exactly correct. "peak" gold means the price is not high enough to justify extracting it (from the ground or scrap jewelry or coatings on spacecraft). Every country wants it because confidence in USD fiat is low and falling towards zero. My suspicion is Trump will revalue gold from $42/oz to some really large number, thereby opening up extraction a bit more.
Let's make our choices, set our lines, and wait for the bigger fish to strike. Thanks. Jay
Thanks for letting us know that known reserves are shrinking. I didn't realize that was widespread; thought it was just a natural outcome for individual mines, as they dig it up, until they find more reserves.
I don't understand "Every deal that closes takes another buildable project off the market. Which makes the ones still standing that much more valuable."
Why buy a small mining company if not to continue the project and thus increase your dwindling reserves?