Loading ...Peak gold mining: 2018 top?
It looks like gold mine supply will fall off a cliff from 2018 on.
These charts indicate that in the coming years, the mine supply will be reduced by half of its supply. Therefore a gold price of at least 2500-3000$+ will be needed to balance the supply gap I believe (or far higher)
This clearly aligns with what I see at all major gold stocks, very short mine lives and few new discoveries. Therefore the better investment could be the developers like NAK, NG, SA, CKG, MAX, FPC, SSP, VGZ, FF… sitting on big deposits that are uneconomical to mine at current gold price. With 2000-3000$ gold however these companies could have very viable projects again. And at least you have no exploration risk like NVO or production issues like PVG!
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Thanks for this. Reminds me of an interview the CEO of Franco Nevada gave a few months back. He discussed the same issue. The decline in prices annihilated capital investment and there havent been nearly as many big discoveries as there used to be. Now supply/demand has balanced and whoops! Nobody knows where new supply will come from going forward.
Interesting thanks. Curious, which is your favorite A, B, C etc out of the list of silver plays you posted yesterday.