Shortages Ahead: Half Of Global Gold Production Is No Longer Profitable
By Joshua Krause
ActivistPost.com
NOVEMBER 29, 2015
When you examine the precious metals market, what you’re really looking at is two separate markets, being fueled by two very different buyers. There are those who feel that the stock market is a great investment, and those who feel that our financial system can’t be trusted. Stock buyers are feeling good right now, so they’re pushing “safe haven” assets out of their portfolios. Meanwhile, the folks who don’t trust the system have put their faith in real gold, and buy it whenever they can.
nfortunately for gold miners, this asset is priced by the former of the two. Paper gold sets the price of real gold, even though paper gold is being backed by less and less real gold as time goes on. We’re approaching a unique moment where the paper market and the physical market become untangled from each other. They’re beginning to move in opposite directions. As the stock market crowd ditches their paper assets, the price just keeps falling, and the gold bugs are taking advantage of this artificially lowered price while they still can.
As a result, the gold mining community is feeling the pinch. These low prices, coupled with the fact that physical demand is rising, has created the perfect conditions for a supply crunch in the near future.
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