Why Gold Mining Production Is Expected to Achieve All Time Highs In 2021

FinancialNewsMedia.com News Commentary

PALM BEACH,  Fla., May 19, 2021 /PRNewswire/ -- Precious metals and commodities, and almost everything that is sold, is subject to the laws of supply and demand… Gold is the exemption! The law of demand says that at higher prices, buyers will demand less of an economic good. The law of supply says that at higher prices, sellers will supply more for less. These two laws interact to determine the actual market prices and volume of goods that are traded on a market. Several independent factors can affect the shape of market supply and demand, influencing both the prices and quantities that we observe in markets. Even though the price of gold is going up, it is still in demand and miners are holping to mine even more.  According to Gold.org, the best estimates currently available suggest that around 197,576 tonnes of gold has been mined throughout history, of which around two-thirds has been mined since 1950. If every single ounce of this gold were placed next to each other, the resulting cube of pure gold would only measure around 21 metres on each side. The BBC says a higher estimate of 2.5 million tonnes, would be a cube of gold about 10 meters high covering Wimbledon Center Court is the highest estimates… Active stocks in the mining markets this week include St. James Gold Corp. (OTCQB: LRDJF) (TSX-V: LORD Exploits Discovery Corp. (OTCQB: NFLDF) (CSE: NFLD), New Found Gold Corp. (OTCPK: NFGFF) (TSXV: NFG), Marathon Gold Corporation (OTCQX: MGDPF) (TSX: MOZ), Victoria Gold Corp. (OTCPK: VITFF) (TSX-V: GCX).

An article released by Reuters discussed a recently released London Metals Report which stated: ""The world's mines will produce 3,368 tonnes of gold this year, down 4.6% from 2019 and the lowest in 5 years, but high bullion prices will help to push up output by 8.8% to a record 3,664 tonnes in 2021. Metals head of mine supply, Adam Webb, said that: "Demand for gold, meanwhile, will fall 25% this year to about 3,000 tonnes before recovering 17% in 2021. The coronavirus pandemic forced many mines to close temporarily and curtailed sales of gold jewellery, but it also triggered a rush to buy gold for its perceived safe-haven status… These investors pushed prices Gold above $2,000 an ounce (in 2020), the highest level on record, and… prices are likely to average more than $2,000 in 2021."