Gold supplies are falling, says mine spokesperson

A spokesperson for one of America's leading gold mining companies has predicted that prices will rise due to a decline in production.

Ron Parratt, president of Nevada-focused precious metals exploration company AuEx Ventures, said that there is more gold in existence as bullion than there is available to be mined easily.

"Worldwide gold production has been slowly declining over the last six or seven years. At the same time, demand has increased. This is one reason the gold price has gone up Aboveground stocks are quite substantial relative to the newly produced supplies," he commented.

Mr Parratt added that, due to all the currency problems being experienced currently, gold bullion is "the ultimate and only backing" in investment terms.

Earlier this month, Newcrest, one of the world's largest gold producers, recorded a drop in output amid fuel supply problems.

The company, which is Australia's largest gold mining firm, said that an explosion at its Telfer mine had cut gas supplies by 30 per cent, causing some $38.4 million worth of disruption. This could act to support gold prices.

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