Some Thoughts On the Current Situation and A Look Ahead

In his time on earth, man has mined about 93.3 kt (3 billion oz) of gold. About one-half of this has been produced in the past 35 years. Roughly one-third of this gold is held as reserve in Central Banks. One-third held is in personal reserves. And one-third is held as jewelry or other fabricated products. The world per capita availability of mined gold is increasing. There are many forces shaping gold's future. Gold currently has a favorable exchange ratio. This is encouraging many new gold mining developments. Production is increasing and new recovery techniques are surfacing. The use of gold in the financial markets is increasing in some unique ways. And gold is again fulfilling its role as a universal money, making its future predictable. Gold Today Man is currently mining gold at the rate of about 1.4 kt/a (44 million oz per year). This adds about 1.5% of newly mined gold to the total supply each year. This production plays a small role in the pricing mechanisms since much of the 93.3 kt (3 billion oz) mined is available to the market in some form. The 31.1 kt (1 billion oz) held by central and international banking