Gold mines are depleting
The supply side of the gold market isn't the one you hear about often. It's usually driven by the demand side, inflation and central banks.
Gold bulls have been beaten down recently but the Globe & Mail today lays out the situation. 1) There haven't been any mega-gold mine discoveries in nearly 20 years, despite the boom. 2) The lives of gold mines are typically 25-40 years. 3) Mining exploration dipped after the commodity bust (but has picked up more recently) 4) It's tougher than ever to get approvals to build a mine 5) Gold mining technology is essentially unchanged over the past 50 years.
It's an interesting read on the supply dynamics of the oldest currency. Read it here.
