Gold News

Gold discoveries 'may have peaked'

The era of continuing major gold discoveries may be over, an analyst in the gold industry has said.

David Galland, writing for Resource Investor, has said that the comments made earlier this month by Barrick Gold's Peter Munk may be accurate in their poor predictions for gold discovery.

The gold currently being discovered is not enough to meet the continuing demand for the precious metal, which could result in an increase in prices for those buying gold.

Mr Galland pointed out that whereas gold discoveries used to be in the region of ten million ounces, mines found in recent times have only amounted to around one to three million ounces.

"This lack of discoveries means the fuse is lit for a rocket shot tomorrow. Adding boosters to the rocket, we have a commodities bull market that shows no sign of ending anytime soon and the US dollar, [which] is not going to somehow reinvent itself as sound money in our lifetime," he said.

Only one significant gold discovery has been made recently, which was a mine in Ecuador by Aurelian in March 2008. However, this operation was ceased in April 2008 for environmental reasons.

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