Monday, February 11, 2013

Gold Production is Set to Plunge

"I don’t think we’re going to be finding much new gold at all. So consequently, as these existing mines get depleted and all mined out, I think production will fall dramatically, irrespective of what the gold price does. When you put that in the perspective of central banks, which have gone from being large suppliers of gold for years and years and now they are taking gold out of the market, you've had a swing of at least 1,000 tons per year in central bank activity.

When you put this into the context of a market that’s only about 4,000 tons per annum, and then you add to this the fact that future gold production is literally set to plunge, I think there is no choice but for the price of gold to go ballistic on the upside. It’s just a matter of how long these paper shenanigans can continue. Once these (paper shenanigans) are over, and they will certainly be over at some point, the price will go up by multiples of the current level.”

- John Embry via a recent King World News interview, read the full interview here: