The gold price hit a top record of $2075 an ounce last August. This price rise happened because of gold trading and has posed a question to the society: when will gold run out?
Gold is in hot demand as an investment. This is because it represents a status symbol and is a key component in many electronic products. The scarcity of gold further higher the demand for it. Therefore, many investors have invested in this field, despite knowing the truth that gold will run out eventually.
The definition of peak gold is the year that we have mined the most. Some believed we have already reached peak gold. Based on the statistic, the totalled gold mine in 2019 is 1% lower than in 2018. The World Gold Council announced that this is the first annual decline in gold production since the year of 2008. However, experts ensure that the dramatic decrease in gold production after the years of peak gold is not likely to happen.
How much gold left?
There are two ways to determine the volume of gold remained:
Reserves — gold that is economic to mine at the current gold price
Resources — gold that will potentially become economic to mine after further investigation, or at a higher price level
The results of calculating gold reserves are much more precise than resources. However, the process of calculation is quite complicated.
US Geological Survey has estimated the below-ground stock of gold reserves to be approximately 50,000 tonnes. The survey estimated that around 190,000 tonnes of gold have been mined. Based on these data, there is still 20% gold left.
The largest source of gold mining
Witwatersrand Basin of South Africa is the largest single source in gold mining throughout history. It consists of roughly 30% of all gold mined. Other sources include the Mponeng mine in South Africa, the Super Pit and Newmont Boddington mines in Australia, and mines in Nevada, US.
When it comes to the largest mining country, China is currently the largest mining country followed by Canada, Russia, and Peru.
Some locations are harder to mine
Many large, old and low-cost mining areas are near exhaustion. Today, 60% of the world’s mining operations are surface mines, while the other 40% is underground. Higher cost and more machines are needed to mine areas below the surface.
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Content Source: https://www.bbc.com/news/business-54230737
Prepared by: Anne