Gold News

Mining problems could boost gold prices

A long-time speculator and analyst for the acclaimed Zeal financial market newsletters and reports has claimed today (September 8th) that gold mines are struggling to increase supply.

Scott Wright has explained that considering gold prices have been on the rise for seven consecutive years, mines have had ample time and motivation to increase their output.

However, he points to the fact that the four major mining firms - Barrick Gold, Newmont Mining, AngloGold Ashanti and Gold Fields - are on course for an 18 per cent (4.5 million ounces) decrease in production.

He told "The numbers from just these four companies are material, as they are responsible for over 25 per cent of the annual mined supply of gold.

"So what's going on with the gold mining industry? Mining for gold should be more popular now than ever before, and there is a lot of money to be made in a bull that is expected to stay strong for many more years. Why the decline?"

Of course, the situation is ideal for anyone considering investing in gold, as a supply shortage will push prices higher over the long-term.

Mr. Wright's comments have been further expanded on by Tye Burt, the chief executive officer of senior gold miner Kinross Gold, who explained the structural challenges facing the industry.

He said: "While the gold mining industry has seen successively higher gold prices over the last decade, permitting and construction challenges, operational difficulties, and cost pressures have caused global mine production to decline with no signs of this trend abating in the near future."

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