Peak Gold?
cohodk
Posts: 19,129 ✭✭✭✭✭
Ok, so heres a link to a Zerohedge article 
. Peak Gold I link it because it concerns research from my buddies at Goldman Sachs 
LOL
Anyway, if the miners run out of gold in 20 years, wont that mean they will be out of business? Are the miners doomed for extinction and hence we should not buy the stocks?
. Peak Gold I link it because it concerns research from my buddies at Goldman Sachs LOLAnyway, if the miners run out of gold in 20 years, wont that mean they will be out of business? Are the miners doomed for extinction and hence we should not buy the stocks?
Excuses are tools of the ignorant
Knowledge is the enemy of fear
0
Comments
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
<< <i>Why the hell are we even mining more gold? Makes no sense to me. >>
because if it costs $1000oz to mine and you can sell it for $1200, you make money. Was that a serious comment?
<< <i>
<< <i>Why the hell are we even mining more gold? Makes no sense to me. >>
because if it costs $1000oz to mine and you can sell it for $1200, you make money. Was that a serious comment? >>
Yes, because we don't need the gold and all the environmental problems that result from mining it. Just because you can make a little money from it doesn't mean that it needs to be done. It's not like there is a severe shortage of it.
<< <i>I believe it has to be peak gold, similar to peak oil, which sent prices soaring....check that. >>
Wasn't "peak oil" called years ago but we then had the onset of fracking which liberated vast stores of oil and gas previously not available?
Seems like today's peak anything can go out the window due to new technology.
<< <i>
<< <i>I believe it has to be peak gold, similar to peak oil, which sent prices soaring....check that. >>
Wasn't "peak oil" called years ago but we then had the onset of fracking which liberated vast stores of oil and gas previously not available?
Seems like today's peak anything can go out the window due to new technology. >>
We better hope that fracking doesn't cost us in a big way environmentally down the road.
<< <i>Lol how many mining companies have made any money in last 3 years... >>
Nearly all of them. It's only been since 3rd quarter 2013 (<2 years) that their economics went out the window.
There are still some making money each quarter. Most of the losses of the past 20 months have been in revaluing/writing down gold reserves/mines down from $1650-$1800/oz to $1100-$1300/oz.
Peak gold last came in the mid-1980's, about 5 years after the gold price peak. So a gold production peak in 2015 is similar to the timing of how the last one occurred. It doesn't matter all that much if you're mining 2100 tonnes per year (year 2000) or 3200 tonnes per year (year 2014).....when the world's gold inventory is 170,000 tonnes. The mining companies still aren't generally profitable....but they are getting closer to writing down all their assets to current prices. They still have more work to do in reporting actual "all in" gold costs. They still don't do it properly. While they currently report $900-$1200/oz "all-in" that doesn't include everything. Their real costs are still up in the range of $1100-$1300. And they won't be making much money until the gold price gets back above $1300-$1400. Some of the large South African mines have costs up to $1500/oz.
Yes, if miners run out of economic gold to mine in 20 yrs....they will be out of business. A lot of them might go that way. It already costs a pretty penny to mine 3 miles under ground and 2-1/2 miles in the mountains. And the big near-surface projects that could be very economical are still sitting on the launch pad as the local jurisdictions play games with environmental permits and taxes. It's not looking good for miners longer term with gold prices staying at these levels. And if they go lower?