Gold has been used as a medium of exchange for thousands of years and has held its value throughout that time. That is what makes gold so desirable. Gold has always represented undiluted value and a financial hedge against bad economic times.
The fact is, however, that the supply of gold may be diminishing. Old, profitable mines have been depleted, and finding new mines is becoming more difficult.
With the COVID pandemic throwing global economies into chaos, the current gold price has been hovering around $1,900 per ounce these last few weeks.
At this time, there is no new major gold mining operation that is able to increase the known supply of gold. We are using more gold than we are producing.
In 2019, global gold mining production amounted to 3,463 tons. This was one percent less than in 2018. South Africa, once the world’s leading gold producer, has seen its mining production decrease steadily since 1970, as have many other gold-producing countries.
Source: Virginia Fidler | The Gold Telegraph
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