{"id":42749,"date":"2019-01-14T11:10:31","date_gmt":"2019-01-14T16:10:31","guid":{"rendered":"https:\/\/olduvai.ca\/?p=42749"},"modified":"2019-01-14T11:10:31","modified_gmt":"2019-01-14T16:10:31","slug":"yet-another-major-reason-to-buy-gold","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=42749","title":{"rendered":"Yet another MAJOR reason to buy gold"},"content":{"rendered":"
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Yet another MAJOR reason to buy gold<\/a><\/h3>\n
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For almost a year now, I\u2019ve been advising you that gold production is plunging\u2026<\/p>\n

By itself, declining gold production isn\u2019t a huge deal.<\/p>\n

It takes hundreds of millions of years for minerals to form deep in the earth\u2019s crust\u2026 but humans only need a few decades to extract it.<\/p>\n

That\u2019s why mining companies need to constantly explore for new deposits.<\/p>\n

And that\u2019s where the problem comes in\u2026 mining companies haven\u2019t been exploring.<\/p>\n

Large mining companies have been cutting their exploration budgets for years. By the end of 2016, exploration budgets hit an 11-year low.<\/p>\n

Part of the reason for the decline in exploration has been the stagnant gold price and general, investor disinterest toward the gold mining sector.<\/p>\n

If you look at a chart of the Gold Miners ETF (GDX), the price hasn\u2019t gone anywhere for five years.<\/p>\n

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And gold prices have likewise languished; today\u2019s price of $1,290 per ounce is down 30% from the 2011.<\/p>\n

To fight the tough times, miners slashed their exploration budgets.<\/p>\n

That means, when the demand for gold picks up again (which I think we\u2019re starting to see now), there won\u2019t be enough gold supply.<\/strong><\/p>\n

You don\u2019t have to just take my word for it\u2026<\/p>\n

Pierre Lassonde, the billionaire founder of gold royalty giant Franco-Nevada and former head of Newmont Mining \u2013<\/p>\n

If you look back to the 70s, 80s and 90s, in every one of those decades, the industry found at least one 50+ million-ounce gold deposit, at least ten 30+ million ounce deposits, and countless 5 to 10 million ounce deposits.<\/p>\n

But if you look at the last 15 years, we found no 50-million-ounce deposit, no 30 million ounce deposit and only very few 15 million ounce deposits.<\/p>\n

So where are those great big deposits we found in the past? How are they going to be replaced? We don\u2019t know.<\/p><\/blockquote>\n

\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Yet another MAJOR reason to buy gold For almost a year now, I\u2019ve been advising you that gold production is plunging\u2026 By itself, declining gold production isn\u2019t a huge deal. It takes hundreds of millions of years for minerals to form deep in the earth\u2019s crust\u2026 but humans only need a few decades to extract […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[374,14606,647,7312,7313],"class_list":["post-42749","post","type-post","status-publish","format-standard","hentry","category-economics","tag-gold","tag-gold-production","tag-precious-metals","tag-simon-black","tag-sovereign-man"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42749"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42749\/revisions"}],"predecessor-version":[{"id":42750,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42749\/revisions\/42750"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}