The Next Generation Of Gold Deposits

When we were asked to prepare a paper on gold to be part of the Economics of Precious Metals session, our immediate thought was that we should address the question of supply. Are the existing mines of the world capable of filling the demand for gold? We recognized that gold does not conform to the normal pressures of supply and demand. Major new sources of production and increased sales might have a very short term effect and depress the price but this does not last very long. Those forces that affect gold prices are very different from the ones economists normally deal with. Factors such as mass psychology, political tensions and fear are certainly more important to the gold price than supply and demand in today's world.