This is all fine but there’s a cautionary side note here. The dollar value of global gold mining production is enormous. Today, the gross market value of newly mined gold is approximately $450–550 billion USD per year.
Global gold mining is also on a slight upward trajectory, driven by new and expanded projects in countries like Canada, Ghana, and China (just google it, there are lots of mines coming back online next year)
No matter how you frame it, gold is being diluted at a substantial and accelerating rate. A massive amount of new supply is added to the market each year, and current trends seem to suggest this flow is likely to increase rather than contract in the near term.
For gold prices to continue rising meaningfully, demand must grow at an ever-increasing pace just to offset the ongoing expansion in supply.
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This is all fine but there’s a cautionary side note here. The dollar value of global gold mining production is enormous. Today, the gross market value of newly mined gold is approximately $450–550 billion USD per year.
Global gold mining is also on a slight upward trajectory, driven by new and expanded projects in countries like Canada, Ghana, and China (just google it, there are lots of mines coming back online next year)
No matter how you frame it, gold is being diluted at a substantial and accelerating rate. A massive amount of new supply is added to the market each year, and current trends seem to suggest this flow is likely to increase rather than contract in the near term.
For gold prices to continue rising meaningfully, demand must grow at an ever-increasing pace just to offset the ongoing expansion in supply.