Last month, gold prices hit a record high of more than $ 2,000 an ounce.
The price rise has been caused by traders in this precious metal, though there are questions about its supply and its disposal.
Gold is a highly sought-after investment, a symbol of status, and an important component of many electronic products.
But it is also an exhaustive resource, and therefore the day, when it will become impossible to obtain it, will surely come.
Experts are talking about the gold peak – when the annual extraction will be higher than all previous years. Some believe we have already reached this peak.
If we believe the World Gold Council, in 2019, gold mining production amounted to 3,531 tons, down 1% from last year. This was the first decrease in production since 2008 compared to previous years.
“Despite a slight slowdown or reduction in gold supply – due to the depletion of existing reserves and the low probability of discoveries – it is a bit premature to talk about peak production,” said Hannah Brandstaeter, a spokeswoman for the World Gold Council.
Even when gold is at its peak, experts think a sharp drop in production is unlikely. Gradual withdrawal is more likely.
“Mining activity has become constant and will probably continue to decline, but not dramatically,” said Ross Norman of MetalsDaily.com.
Mining companies determine the remaining amount of gold in the following two ways:
Reserves – gold, which is economical to extract considering the current price;
Resources – Gold, the extraction of which, potentially, will become economical after further exploration or at a higher price.
Calculating the number of gold resources is more accurate than reserves, although the first is not an easy task.
The U.S. According to the Geological Survey, the amount of underground gold reserves is 50,000 tons.
For comparison, about 190,000 tonnes of gold has already been mined.
With these data in mind, there is about 20% of gold reserves remaining. But these calculations are not final.
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