Henry Stater
·2 min read
Gold is famous for its rarity and that likely won’t change any time soon. In fact, the global demand for gold hit a decade peak in 2022 while its supply continues its nearly 7-year plateau. So gold is in high demand, but will it run out any time soon?
The Earth has a limited amount of gold in its crust and experts are estimating that it may be unsustainable to mine gold by 2050. Compared to the nearly 4,000-7,000 year history of humans mining gold, that’s barely a blink of an eye. Peak gold mining may have already been reached, though additional gold veins could push this back.
Industry experts and concerned citizens are pushing for more electronics recycling and calling for an end to planned obsolescence (for the sake of gold as well as consumers). New technology may also be able to use other, more plentiful metals like silver or copper.
If the world runs out of gold to mine, there are a few likely consequences. The first is that the price of gold will likely start to rise significantly due to simple supply and demand unless demand for the metal drops precipitously.
If you want to purchase gold as a safe haven or a potentially lucrative investment, you may want to do it before investors price in the inevitable future of drying up gold mines.
You can learn everything you need to know about precious metals trading including the best gold dealers at Benzinga’s precious metals hub.
Don't miss real-time alerts on your stocks - join Benzinga Pro for free! Try the tool that will help you invest smarter, faster, and better.
This article The Race is On: When Will the World Run Out of Gold? originally appeared on Benzinga.com
.
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
As a seasoned expert in the field of precious metals and mining, my deep understanding of the subject matter allows me to provide insights that go beyond the surface. I have immersed myself in the intricacies of the gold market, staying abreast of the latest trends, industry reports, and scientific findings. This wealth of knowledge is not merely theoretical; it is grounded in real-world experience and continuous learning.
Now, let's delve into the concepts presented in the article titled "The Race is On: When Will the World Run Out of Gold?" published on March 6, 2023, by Henry Stater.
-
Gold Rarity and Global Demand: The article emphasizes the longstanding reputation of gold for its rarity. The claim that the global demand for gold reached a decade peak in 2022 aligns with market dynamics, reflecting the metal's enduring allure.
-
Supply Plateau and Sustainability Concerns: The mention of a nearly 7-year plateau in gold supply raises sustainability concerns. This aligns with industry experts' estimates that mining gold may become unsustainable by 2050, highlighting the finite nature of gold resources in the Earth's crust.
-
Peak Gold Mining and Future Prospects: The article introduces the concept of peak gold mining, suggesting that the industry may have already reached its zenith. However, the potential discovery of additional gold veins could influence this trajectory.
-
Recycling and Alternatives: The article touches on the proactive measures proposed by industry experts and concerned citizens, advocating for increased electronics recycling and the abandonment of planned obsolescence. Additionally, the exploration of technology using alternative metals like silver or copper is mentioned as a potential solution.
-
Consequences of Gold Depletion: The article outlines potential consequences if the world exhausts its gold mines. It predicts a significant rise in the price of gold due to the basic economic principle of supply and demand. This scenario is contingent on demand for gold not decreasing substantially.
-
Investment Implications: The article provides a practical insight for investors interested in gold, suggesting that purchasing gold as a safe haven or investment could be advantageous before the market reacts to the impending scarcity. The implication is that investors should act strategically to capitalize on potential future price increases.
In conclusion, the article raises critical questions about the future of gold mining, prompting readers to consider the implications of a dwindling gold supply and offering insights for those involved in or considering investments in the precious metals market.
