There’s a term in the precious metals business that you may be hearing a lot more of in the coming weeks and months: peak gold.
That means that the world’s gold production has hit its highest level and has begun to level off or decline. Some experts say peak gold is already here.
“Gold produced from mines has gone up pretty steadily for 40 years,” Ian Telfer, the chairman of Goldcorp, a Canadian gold production company, told a newspaper. “Well, either this year it starts to go down, or next year it starts to go down, or it’s already going down.”
The reasons that he and others cite include aging mines with dwindling reserves, the lack of major new discoveries, and the current lagging gold price that inhibits new exploration.
Some investors believe that peak gold will drive up gold prices in accordance with the basic economics of supply and demand. Others point out that previous declarations that the world reached peak gold turned out not to be true as new mines and better technology turned the tide.
At Dallas Gold & Silver Exchange, we don’t offer predictions. But whatever your conclusion, we offer more than four decades of experience, integrity and transparency in buying and selling precious metals.
There’s another side of the gold coin as well. According to the World Gold Council, gold mining meets about 75 percent of the world’s needs each year, with the rest coming from recycled gold. Although recycling industries are getting better at recovering precious metals used in products such as computers and cellphones, about 90 percent of recycled gold still comes from old jewelry that is re-refined.
So whether or not the world is at peak gold, recycled gold will remain a crucial part of the world’s supply. And Dallas Gold & Silver Exchange will continue to offer great service and excellent prices for any jewelry you no longer want, from big pieces to broken remnants.
And however the world gets its gold, we’ll show you how it becomes beautiful jewelry, fine watches and compelling collectibles – all at amazing prices. In this case, “peak gold” is what the other guys charge.