WHAT WILL BE THE DIZZYING HEIGHT FOR GOLD?

The Grand Final Peak Gold Price Before Industrial Devastation and Destruction

Yes, folks, that day is coming. When it will happen is the million-dollar question. So, what will the fallout be?

Here are a couple of scenarios based on things that have never happened before. The Earth’s crust contains only a finite quantity of metals. If the quantity of gold already mined since the first ounce ever extracted is found again, that will be the final ounce in the Earth’s crust. The end is forecasted by the US Geological Survey (USGS) for 2084. The quantity of gold mined varies, with the USGS estimating 244,000 metric tonnes and the World Gold Council estimating 212,582 metric tonnes. There is an estimated 57,000 metric tonnes left to be mined in current reserves, and with new discoveries, this is estimated to be completely mined out by 2084. So, at best, if we discover what’s already been found, we will mine every viable ounce of gold from the Earth within 60 years.

The Curveball

Gold just keeps going up. Why? Everyone has an opinion, and the opinions vary. Gold is a commodity, like a carrot or a lettuce. All commodities rely on supply and demand to set the price on a given day. Gold is no different. There is no magic formula to estimate the final price of gold or Peak Gold Price. Peak Gold Price is the price when the last ounce is mined.

The Fallout

As the reserves and production of gold decline, mines will begin to close. They won’t be closing because of low gold prices, but because there is no more gold. The fallout will be felt first in the country towns in the goldfields. Then, it will spread to unemployment in minefields, trucking companies, machinery, plant and equipment manufacturing, pump and generator manufacturing, fuel/oil suppliers, chemical suppliers—and this is just the tip of the “outcrop.” Drilling companies, metallurgical laboratories, surveyors, geologists, geophysicists, geophysical surveyors—a massive fallout just for gold. Other metals will follow the same fate, with copper due to be mined out in 90 years.

Sixty years from now, it is going to be a bleak future for the entire global gold industry and for those born afterward trying to survive in that new era. Don’t worry about wars; with no metals, there will be nothing that can be manufactured unless it’s made from wood or oil.

So, what will happen to the gold price when it becomes so scarce and there’s a reduced quantity in the market to be traded? Is this why Bitcoin and its ilk are starting to gain traction? They can continue to provide more coins for a market to trade. One Bitcoin is already 15 times the price of an ounce of gold.

The world is just one big trading platform at the end of the day. Unfortunately, if there’s no gold, there are no trades. It sounds unimaginable at this time, but at some stage, everything comes to an end—even our lives. If there is no gold, what will become of the value of currencies in countries? The US dollar is backed by gold. Even though the gold standard for currency value was abolished in the late ’80s, world currencies still rely on the value of a country’s currency based on its gold holdings in its treasury—hence the US gold bullion reserves, which total 8,133 metric tonnes in the US Treasury.