The World's Gold Majors are Facing a Real Estate Crisis

FN Media Group Presents OilPrice.com Market Commentary

LONDON, April 10, 2019 /PRNewswire/ -- Forget about peak oil. The real crisis hitting the commodity markets is peak gold. The Financial Post reports that "all major deposits have been discovered." Goldman Sachs forecasts there may be only 20 years of supply left. The world's gold majors may soon be in a real estate bidding war.  Mentioned in today's commentary includes:  Seabridge Gold Inc. (NYSE:SA) (TSX:SEA), Teck Resources (NYSE:TECK) (TSX:TECK), Teck Resources (NYSE:TECK) (TSX:TECK), Great Panther Mining (NYSE:GPR) (TSX:GPR). Endeavor Silver (NYSE:EXK) (TSX:EDR).

For companies like Euro Sun (ESM, CPNFF), this could represent a major windfall. Their Rovina Valley project in Romania is the #1 copper/gold resource in Europe - with reserves totaling 7.5 million ounces of gold and 1.5 billion pounds of copper.

Rovina's previous owner - Carpathian Gold - spent $51 million sinking 138,000 meters of drill holes to prove up the potential $13.3 billion resource. It's a similar and, perhaps even better image, than that of the Timok project in neighboring Serbia, and the company that owns Timok was just snapped up for $1.4 billion. And, unlike Nevsun, Euro Sun has its mining permits - the first issued in Romania since 2003. It could be in production within as little as 24 months.

Here are five reasons to pay close attention:

1. The World Is Facing Peak Gold
2. Europe's #1 Copper/Gold Find
3. Robust, Mine Ready Economics
4. Their $1.4 Billion Serbian Neighbor
5. Romania's First Mining Permit Since 2003

Reason #1 - The World Is Facing Peak Gold Reserves

Simply put, the world is running out of viable gold reserves. In comments to the financial post, Ian Telfer, chairman of Goldcorp, said: "If I could give one sentence about the gold mining business… it's that in my life, gold produced from mines has gone up pretty steadily for 40 years."

According to the USGS, indicated and identified reserves are down from 57,000 tons in 2017 to just 54,000 today. That's a precipitous drop in two years. Meanwhile, demand is skyrocketing on the back of the highest central bank buying in 50 years. It's now at 4,345.1 tons, up 4% from just a year earlier. Goldman Sachs is already forecasting $1,425 per ounce.