Gold exploration declines by 55%

English: Pouring molten gold into ingot mold a...

The volume of drilling activity in the global gold industry has fallen by 55 per cent in the past 12 months, new data from research group IntierraRMG has found.

Less exploration means supply.

Less gold supply should mean a higher gold price, ONLY if gold demand stays steady or rises.

Such a scenario will benefit gold companies who have a proven resource.

Often, the best thing such a company can do, is to leave the gold in the ground rather than spending hundreds of millions of dollars trying to extract it.

Management who think that success is measured by how much gold they “pour” can prove to be a handicap for its company’s share price, especially when capital is scarce.

One Response to Gold exploration declines by 55%

  1. Mark McManus says:

    I did hear an analyst on radio a few weeks ago say that the worlds known gold stocks – if poured into a cube – would measure 20.4 metres cubed – and that the cube increases in size by about 3% annually – I imagined a much larger cube – can anyone verify ?

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