Rabindra Dhungel, 26 september 2020. Have you ever wondered when buying gold jewelry where the gold comes from, and whether its supply will always continue or whether it may end? Gold prices rose sharply last month. The price of gold reached 2,000 dollars, or more than 200,000 Nepali rupees per ounce.
Gold traders have been at the forefront of the rise in prices, but at the same time, the debate over gold supply has begun. Questions are being raised as to whether the supply of gold will end or not. Gold is used for investment as a status symbol and for many electronic products.
Experts talk about the concept of ‘Peak Gold’. Over the past year, people have taken gold back to their full potential. Many experts say that gold has reached its peak. According to the World Gold Council, the total gold production in 2019 was 3,531 tons, which is one percent less than in 2018. Production fell for the first time since 2008.
Hannah Brandsetter, a spokeswoman for the World Gold Council, said: But then gold production has peaked, he said, adding that he could be quick to point out.
Experts say that even if ‘peak gold’ comes, it will not mean that gold production will be very low. Experts say the decline will be gradual in a few decades. “My production has stabilized, seen a decline, but not much,” explains Russ Norman of MetalsDaily.com.
Excavation companies estimate the amount of gold hidden underground in two ways. The first reserve is gold, which has been mined. Another is resource gold. This includes gold, which will be mined in the future or will have to pay a higher fee to extract it. According to the US Geological Survey, gold reserves currently stand at 50,000 tonnes. So far, 190,000 tonnes of gold has been mined.
According to some estimates, 20 percent of the gold is yet to be mined. But the statistics keep changing. With the help of new technology, some information about new stores can also be found. It is not possible to reach as far as now. Prices can be reduced with the help of new technologies such as artificial intelligence, smart mining and big data. Robots are being used in many places.
South Africa’s Witwatersrand is the world’s largest source of gold, accounting for 30 percent of the world’s gold. China is the largest gold miner. Canada, Russia and Peru are also major gold producers. The search for new gold mines continues, but they are being discovered in very small quantities. Therefore, we will have to rely more on old mines in the future as well.
Large scale mining is very expensive, requiring large machines and workers. “Mining has become difficult,” says Norman. Many large mines, where mining is difficult, are now coming to an end in South Africa. China’s gold mines are small, so they are expensive. ‘
There are very few areas on earth where gold is expected to be found but not excavated. Some of which are in areas where uncertainty persists. Excavation in areas including West Africa is a very difficult task. Gold prices hit a record high in August, but that doesn’t mean gold mining is accelerating.
According to experts, gold production often does not affect its price. “The work is done on such a large scale that the price is not immediately affected,” says Brandstator. Many mines have closed, so the Kovid-19 epidemic is behind the rise in gold prices.
It is difficult to estimate exactly how much gold is left on the earth, but there is also gold on the moon. But it will be very expensive to extract gold from there and bring it to earth from there. Astronomer Senad O’Sullivan says, “There’s gold on the moon, but it’s not easy to get there.” In addition, there is gold in Antarctica. Gold is also under the sea, but it is not easy to get it out of there.
Along with gold, there is also something good. It can be reused. Gold is also widely used in power generation. The gold used in the phone can cost only a few pounds. Efforts are also being made to extract gold from there. Therefore, gold mines are not completely depleted.