Mining CEOs Agree, We Could See A 2015 Gold Supply Crunch
By GCRU Gold News on Tuesday, December 23 2014, 23:00 - Permalink
Among them is a very real possibility of a gold supply crunch in the coming years.
“Grades are down, projects are tougher, they’re more remote, which makes it a much more challenging business right now,” he continued. “The industry is allocating less to exploration to make new discoveries, or allocating less money to the pipeline – so, the pace of the projects moving through that pipeline is slowing down, that’s going to impact supply.”
Rob McEwen, chairman and chief owner of McEwen Mining Inc. told Kitco News that he expects gold to reach US$2,000 an ounce by the end of 2015, with that figure linked to less supply on the horizon.
“So, the next time gold runs, there’s not as much gold available,” he said. “The supply of gold has been curtailed both through cutbacks and development projects – so there’s going to be a gap in production that could be three to five years long before it’s properly addressed.”