Peak Gold? Maybe So
Source: GoldSeek, Dr. Jeffrey Lewis (8/3/10)
"Supply of gold and silver in the ground is becoming freakishly low."
Gone are the days that a mining company could buy acreages of land to find just one valuable metal. Instead, companies are shifting to mixed metal operations due to the fact that the purest lands are now used up, and companies are forced to dig deeper and extract lessened amounts of metals to sustain profits.
Mining companies would greatly prefer to dig for a single metal at a time. One metal in one area, with an acceptable ratio of content to dirt, is preferable. The problem is, however, that those types of mines are gone, and mixed metal operations are the last stop for sustained growth. Mixed metal mines are less profitable, thanks to the difficulty in sorting, as well as accounting for the potential profit and loss due to operations.
While there is still plenty of gold and silver to be found, the simple fact that these mixed metal mines are even on the radar indicates that the days of rampant production are over, and mines are being forced to look for smaller and smaller deposits of multiple types of metals to remain consistent in their growth rates. All in all, the supply of gold and silver in the ground is becoming freakishly low.