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Friday, November 13, 2009

World gold supply is running out

Aaron Regent, president of Barrick Gold - the world's largest gold producer - said the world may be running out of gold.

He said there's a strong chance we've already reached "peak gold." World production peaked in 2000 and has been falling by a million ounces per year ever since, and ore grades - how much gold is actually in the ore - have fallen from 12 grams per ton in 1950 to near 3 grams per ton today.

Gold reached an all-time high of $1,118 today, and declining production should only act to add a floor under prices in the future.

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