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The Financial Times reported that mining industry leaders and analysts believe that gold output has peaked, at least for the current commodities cycle. In fact, Thomson Reuters GFMS sees global gold production falling 3 percent in 2016, “ending a seven-year period of rising output.”
The Financial Times reported that mining industry leaders and analysts believe that gold output has peaked, at least for the current commodities cycle. In fact, Thomson Reuters GFMS sees global gold production falling 3 percent in 2016, “ending a seven-year period of rising output.”
The news outlet states:
Gold has been one of the commodities hit by the worst environment for mining in more than a decade. The price has declined more than 40 per cent from its 2011 peak, to a level where many gold miners struggle to recoup the costs of extraction.
This year some had expected gold to be under pressure from higher interest rates in the US, after the Federal Reserve began to tighten monetary policy last month.
However the gold price has risen 2.7 per cent so far in 2016, while stock markets around the world have tumbled. A controversial investment with a variety of competing theories for what determines the price, gold has provided comfort for investors who see the inert metal as a haven amid economic and political turmoil.
Miners hope limits to fresh gold supply will increase the chances of longer-term recovery.
