Has Gold Reached Its Peak?

Most know about peak Oil – the proposition that world oil output has peaked and is in fatal decrease. Now, peak gold is being declared by commerce professionals. Vincent Borg, representative for the world’s large-scale gold producer Barrick Gold, says gold output has been in down turn since 2001. Total gold production peaked at 2,600 tons per year round 2000. The reason gold output has peaked is that living mines are being depleted and new discoveries are couple of and small. Also, it takes many years to convey an asset discovery into output.

Demand, on the other hand, has advanced to 3,800 tons in 2009 according to the World Gold Council. Over the ten years from 1999 to 2009 centered banks have sold 3,867 tons of their gold under various Central Bank Gold Agreements. These agreements have now ended and no more central bank trading is planned. Even with centered bank trading the gold price has increased well over 200% since 1999. During the last several years a number of Gold Exchange Traded capitals have emerged. These are capitals that deal portions to investors that pathway the cost of gold. These capitals must buy and contain personal gold to back the portions. Currently these capitals hold 2,000 tons of gold and comprise a foremost new source of demand. The financial urgent situation that began in 2007 adds other demands as large institutional investors that have not ever belongs to gold before move into the market. New little investors are attracted to purchase into the funds, coins and jewelry.

It appears that Peak Gold is genuine. Given the present environment – the gold price road is only one way.