“Gold demand hit 4,740 tonnes in 2022 – marking an 11-year high and a 15.3% increase year-over-year. Furthermore, gold also saw a record annual price average of $1,800 an ounce on the London Bullion Market Association (LBMA). And a nine-year high for retail bar-and-coin investment. But what’s really driving demand for gold has been aggressive central bank buying… In fact, an annual poll of 83 central banks – managing a combined $7 trillion in foreign exchange reserves – showed more than 66% of those polled believed central banks would increase gold holdings in 2023.“ (Source)
“Gold mine production remains relatively weak – meanwhile, new discoveries have all but disappeared. Since 2018, gold mine output has actually declined. For instance, gold production hit 3,612 tonnes in 2022 – which is still about 1.5% less than what it was in 2018 (its peak)… Put simply, over-capacity plagued the gold mining sector until 2018 – when peak gold output was finally hit – and majors finally threw in the towel. (In that chart above, notice how annual gold production growth finally fell negative in 2018 – the first time since 2008). Since then, gold production has declined from its peak…“ (Source)
“S&P Global wrote back in mid-2022 that there’s been a steady and sharp decline in major gold discoveries over the last 30+ years… In fact, only 28 of the 341 deposits analyzed were discovered over the past decade – containing just 171.8 million ounces. That means only 6% of all gold since 1990 was discovered between 2012-2022. Meanwhile, exploration budgets have increased substantially in that same period.“ (Source)
“This raises the question whether peak gold has finally arrived. The low-hanging fruit has already been mined, and giant deposits containing many millions of ounces of gold are not being discovered at the same rate as they once were.“
Stephan Bogner
Contact
Rockstone News & Research
Stephan Bogner (Dipl. Kfm., FH)
Müligässli 1, 8598 Bottighofen
Switzerland
Phone: +41-71-5896911
Email: info@rockstone-news.com
Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell commodities. The author holds physical gold and silver, stored in Central Switzerland through Elementum International AG. The author does not hold any direct interests or financial instruments related to other commodities or companies mentioned in this article. All views and forecasts reflect the state of knowledge at the time of publication and are subject to change. There is no guarantee that future developments will unfold as described. Investing in commodities involves risks. Consultation with a licensed financial advisor is strongly recommended.
