Gold production has already peaked, analysts and miners say
The world's production of gold was set to break a seven-year string of increases in 2016, due to a lack of new assets and falling grade ores, the Financial Times said citing analysts and industry executives.
BARRICK GOLD
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According to Thomson Reuters’ GFMS metals research team total production of the yellow metal was set to decline by 3% in the year ahead, following a 1% increase in gold mine production to 3,155 tonnes in 2015.
In remarks to the newspaper, Kelvin Dushnisky, the president of Barrick Gold, added a lack of new developments and extended project development timelines to the list of factors that in his opinion were bullish for gold’s medium and long-term price outlook.
Supplies of gold were set to drop by between 15% to 20% over the next three to four years, Vitaly Nesis, the chief executive at Polymetal told the FT.
Nesis said he expected to see the first signs of a recovery, on the back of reduced supplies, in the second half of 2016.
As of 08:48 COMEX gold futures for delivery in February were down by 0.17% to $1,088.90 per ounce.