Gold News

Gold supply 'running into trouble'

There are a number of signs that gold supply is showing signs of difficulty, an expert has said.

Speaking to Rediff News, Louis James of Casey Research cited an announcement from Newmont Mining that its gold production could be set to fall by millions of ounces.

Last October, Newmont also revised its outlook for equity gold sales to between 5.2 and 5.4 million ounces for the entirety of 2007, compared with between 5.2 and 5.6 million ounces previously.

Mr James also explained that gold values are generally based on investor perceptions rather than need, as opposed to base metals and silver, which have various uses within industry.

"I have to believe that despite some short-term fluctuations, the fundamentals of supply and demand - such as they are - are very bullish for gold, at least over the next year or two," he commented.

Meanwhile, mining firm Goldcorp today announced that it reached a record level of gold production last year, announcing an increase of 35 per cent to 2.29 million for the whole of 2007.

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