Gold Shortages and Peak Gold

 Gold has been the king of metals for over 6,000 years, and investor demand has been steady since 2000. But do you think gold shortages and peak gold have arrived?

We have seen peak oil, and most are worried that we will see a massive spike in the price of oil due to lack of new exploration discoveries.

Both oil and gold are similar in that the easy reserves have been exploited and mined.

When hearing the term peak oil or peak gold it strikes fear in the minds of people because it seems we are running out. The term peak oil or peak gold refers to the peak of the easy gold and oil.

There is still plenty of oil on the earth, it will just take more effort to extrude it because oil companies are having to drill deeper to find more reserves. Thus, the price will have to go much higher eventually to justify new exploration.

Gold is in a similar situation. All of the easy gold reserves on earth have essentially been mined up. South Africa used to account for 2/3 of the world’s gold production.

They now produce much less because all of the easy gold veins at the surface have been mined. This is one reason we may be facing gold shortages.

China is now the world’s largest gold producer with the U.S. right behind them. The major concern is that although exploration companies are finding new gold to mine, there have not been any significant finds in a long time.

Gold production has dropped dramatically since the gold bull market began in 2000. In conjunction with falling production numbers, the gold price has steadily risen and will continue to do so until gold producers can keep up with demand.

The world won’t totally run out of gold, but there must be a huge price increase in order to stifle demand and increase supply.

Bob Chapman- 2035 banks in serious danger, FDIC broke

This fits in with the gold bull market scenario very nicely. Since we are in the midst of an inflationary period and investors become more wary of fiat currencies, we will see the gold price go to numbers that will surprise even the most bullish gold bugs.

Bob Chapman of the International Forecaster is predicating gold to go over $6,500/ounce and monetary expert Mike Maloney is predicting gold to go to $15,000/ounce.

These numbers may seem crazy and far fetched, but think about it for a second. Gold is at an all time high nominally, but to meet the 1980 price of $850/ounce you have to adjust for inflation and that puts gold over $2,000/ounce.

What’s important to note is that the world has never seen so many fiat currencies being inflated all at once like we are seeing today. Central banks around the world are using the same Keynesian principles to print their way out of debt.

It doesn’t work and it won’t work. When people finally realize that their paper currencies are getting more worthless by the day, the rush will be on to buy gold and silver.

Gold and silver are a store of wealth and are the anti inflation remedy for those looking to hedge against inflation. It would be smart to start informing yourself of the gold and silver bull market.

It’s hugely important that you prepare now for a dollar collapse, and save yourself financially while you still can. You can now grab your free instant download copy of “Why You Should Buy Gold Now” -- created especially for the gold investment newcomer -- by clicking here.