Why First Nations Will See More Gold Explorers in the Coming Years

JE: The status of gold mine
production and available central
bank inventories, most particularly
western central banks, are the
critical factors in supply. The good
news for gold bulls is that both are
in full retreat.
Mine supply will decline for at
least the next three or four years
irrespective of what the gold price
does. The gold price could rise to
$2,500 per ounce and the mine supply
outlook would be virtually unaffected
in that timeframe. This outlook
relates to numerous factors, not the
least of which is the fact there simply
aren't many large, fully permitted
projects ready to exploit. In reality,
the low-hanging fruit was plucked
many years ago, and gold mining
companies are increasingly being
forced to exploit lesser projects
in more problematic geographical
locations.