Creamer’s Mining Weekly/Marleny Arnoldi/9-4-2020
“Along with adding reserves at existing mines and converting resources to reserves at projects, the gold industry’s long-term success depends on finding new resources in major discoveries. Despite historically high exploration spending over the past decade, there has been a substantial decline in the number of new major gold discoveries, potentially constraining the long-term supply pipeline.” – S&P Global Market Intelligence
USAGOLD note: This speaks to the value of owning the metal outright as coins and bullion free of counterparty risk. Fewer on the financial (paper) side of the market will want to be short physical metal with production dwindling and central banks, a traditional source of supply, continuing to position themselves as net buyers and even expanding their aggregate holdings. Then there is the potential for increased investment demand from sectors of the financial markets now entering the market for the first time like pension funds, insurance companies, and sovereign wealth funds.
