The world's biggest gold producers won't be able to sustain the millions of ounces mined every year, according to Edmonton-based consultant Ralph Bullis who spoke at the Prospectors & Developers Association of Canada conference in Toronto. "Because discoveries are not keeping pace with output and building new mines takes a long time", Bullis said.
"It is highly unlikely, at least in my opinion, that new discoveries of a world-class size can be made on an annual basis by each of the very large gold producers" Bullis said, defining "world class" as deposits of 5 million ounces of gold or more.
Kevin DeMeritt, President of Lear Financial, a precious metal asset management firm believes the stage is being set for a coming gold shortage. "The world's biggest mines, Barrick Gold and Newmont, have all talked about it. Barrick said that at current production rates, gold reserves will be depleted in 10 years", said Deritt.
Despite demand in China and India rappidly increasing,and the price of gold likely to rise, "That won't instantly turn gold production on. The president of Newmont said that if gold were $1,000 an ounce, it would still take four to seven years to open a new mine."
Source: yahoo.com and reuters.com