The world may be running out of gold. That may be odd to hear because people have mined gold for all recorded history and still do today.
But World Gold Council data confirms global annual gold production is stagnating. Extractable deposits are shrinking, miners are struggling to find new sources, and costs are rising due to labor shortages, competition and inflation…
Miners are racing towards “peak gold” production according to analysts.
If they’re correct, the world’s largest producers, like China, Australia, Peru and the United States, will soon reach the maximum amount of gold they can extract from the ground per year.
And unless geologists discover large new deposits in the earth’s crust, gold mining will eventually grind to a halt.
Optimistic theorists believe advanced technologies may someday give miners access to massive, untapped gold reserves that could be hiding under miles of Antarctic ice sheets or floating in the world’s oceans.
But for now, these theoretical gold deposits remain out of reach.
Even if the mining industry discovered vast new deposits and could start tapping them tomorrow, it may never catch up to global demand because gold production is painfully slow.
So slow, in fact…
From the initial discovery, to extracting and refining the ore, to minting saleable bars and coins, it takes a mining company an average of 20 years.
Meanwhile, worldwide demand is rising fast, and the price of gold has hit over 40 record highs over the past year.
Global central banks – the world’s biggest gold buyers – are acquiring and hoarding gold at a pace never seen in 50 years, due to so much economic uncertainty sweeping the globe. At the same time, millions of everyday investors are rushing to buy gold now to protect their life’s work.
Louise Street, Senior Markets Analyst at the World Gold Council, confirms the rising investor demand and says, “The (Over The Counter gold) market has seen a continued appetite for gold from institutional and high-net-worth investors, as well as family offices, as they turn to gold for portfolio diversification.”
All this demand is heating up further because of President Trump’s policies, which call for tariffs and lower interest rates. When Trump implemented these policies in his first term, the price of gold went up close to 60%. These policies are employed by him again, and Wall Street is already taking action.
“London faces gold shortage as traders amass a $82 billion stockpile.”
– New York Post
Bottom line:
Global demand for gold is climbing fast, supplies are running out, and prices are rising.
Inevitably, the day when it will be extremely hard to be commercially extracting gold nuggets from the earth must arrive.
After that, investible gold will become a rare fixed quantity asset. And prices will skyrocket as buyers scramble to secure the lion’s share of the world’s remaining supply.
And the process may already have begun…
Because we’ve already seen gold hit 40 fresh record highs in 2024 and more in 2025, as analysts say it has plenty of room to run.
In my book, this all points to one conclusion:
Do not wait to buy gold – You buy gold and you wait.
Please don’t hesitate to reach out to us for any questions you may have.
May you be safe and well during these uncertain times.
Paul Stone, CEO
Colonial Metals Group