Peak Gold
Encyclopedia
Peak gold is the date at which the maximum rate of global gold extraction is reached, after which the rate of production enters terminal decline
. The term derives from the Hubbert peak of a resource. Unlike petroleum
, which is destroyed in use, gold can be reused and recycled.
(defined in terms of total consumption excluding central banks) in 2007 was 3,519 tonnes. Gold demand is subdivided into central bank reserve increases, jewellery production, industrial consumption (including dental), and investment (bars, coins, ETFs, etc.)
The supply of gold is provided by mining, official sales (typically gold by central banks), de-hedging and old gold scraps and total world supply in 2007 was 3,497 tonnes. Gold production (mining) does not need to make up for gold demand because gold is a reusable resource. Currently, yearly gold mining
produces 2% of the existing above-ground gold which is 158,000 tonnes (as of 2006). In 2008, gold mining produced 2,400 tonnes of gold, official gold sales close to 300 tonnes, and dehedging close to 500 tonnes.
CEO Aaron Regent claimed that global production had peaked in 2000. Barrick's production costs have been "trending down" despite this peak, reaching $465 per ounce.
In 2006, with gold at $650 per ounce, Roland Watson claimed that gold production had peaked in 2001 due to falling exploration in the 1990s, when gold prices were low. He predicted that higher prices and new technologies would boost gold production to higher levels in the future.
In 2010, mined gold production was 2,689 tonnes. This surpasses the previous record of 2,649 tonnes produced in 2001.
Resource depletion
Resource depletion is an economic term referring to the exhaustion of raw materials within a region. Resources are commonly divided between renewable resources and non-renewable resources...
. The term derives from the Hubbert peak of a resource. Unlike petroleum
Petroleum
Petroleum or crude oil is a naturally occurring, flammable liquid consisting of a complex mixture of hydrocarbons of various molecular weights and other liquid organic compounds, that are found in geologic formations beneath the Earth's surface. Petroleum is recovered mostly through oil drilling...
, which is destroyed in use, gold can be reused and recycled.
Supply and demand
World gold demandSupply and demand
Supply and demand is an economic model of price determination in a market. It concludes that in a competitive market, the unit price for a particular good will vary until it settles at a point where the quantity demanded by consumers will equal the quantity supplied by producers , resulting in an...
(defined in terms of total consumption excluding central banks) in 2007 was 3,519 tonnes. Gold demand is subdivided into central bank reserve increases, jewellery production, industrial consumption (including dental), and investment (bars, coins, ETFs, etc.)
The supply of gold is provided by mining, official sales (typically gold by central banks), de-hedging and old gold scraps and total world supply in 2007 was 3,497 tonnes. Gold production (mining) does not need to make up for gold demand because gold is a reusable resource. Currently, yearly gold mining
Gold mining
Gold mining is the removal of gold from the ground. There are several techniques and processes by which gold may be extracted from the earth.-History:...
produces 2% of the existing above-ground gold which is 158,000 tonnes (as of 2006). In 2008, gold mining produced 2,400 tonnes of gold, official gold sales close to 300 tonnes, and dehedging close to 500 tonnes.
Timing of peak production
In 2009, BarrickBarrick Gold
Barrick Gold Corporation is the largest pure gold mining company in the world, with its headquarters in Toronto, Ontario, Canada; and four regional business units located in Australia, Africa, North America and South America...
CEO Aaron Regent claimed that global production had peaked in 2000. Barrick's production costs have been "trending down" despite this peak, reaching $465 per ounce.
In 2006, with gold at $650 per ounce, Roland Watson claimed that gold production had peaked in 2001 due to falling exploration in the 1990s, when gold prices were low. He predicted that higher prices and new technologies would boost gold production to higher levels in the future.
In 2010, mined gold production was 2,689 tonnes. This surpasses the previous record of 2,649 tonnes produced in 2001.