Gold reserves of the world are depleting, warns leading industrialists

Cape Town: ‘Gold Reserves in the world are now depleting and there is no alternative available,’ warned Nick Holland, the CEO of Gold Fields, the Gold mining company from South Africa. The demand for gold is increasing because of the instability and uncertainty prevailing at the global level. In this scenario, the warning by Holland regarding depleting gold reserves indicates a possibility of major upheavals in the world. It appears from Holland’s warning that despite there being a huge demand there will be no supply of gold.

Only last week, claims were made that 75% of the gold mines in South Africa, which is the leader in gold production, are running losses. South Africa has maintained its leadership in gold production for more than past 100 years. The gold business constituted about 20% of the South African economy till the decade of 1980.

But it has been observed that the gold production in South Africa has been steadily falling over the past decade. It has resulted in sharp decline in the investment in this sector and more than 70,000 jobs are at stake. The share of gold business in the national economy also has dropped to less than 8%. The ranking of South Africa in the gold producing countries has also fallen to 7^th place.

It has been observed from various reports that the demand for gold has been increasing over the last decade. The supply and purchase of gold have increased tremendously in countries like Russia, Germany, China, India, United Kingdom, Turkey and Switzerland. Russia, Turkey and Germany have made considerable additions to the Gold reserves in their possession. Some of the European countries have repatriated the gold reserves kept in other countries.

All these developments are an essential part of the Third World War and the large-scale mining of gold and its purchase underline this fact. The trade wars at the international level, rising oil costs and the currency fluctuations will lead to increased importance and high demand for gold. Hence its price could skyrocket and therefore there is already a stiff competition among significant countries to acquire maximum gold reserves.

The World Gold Council has predicted that the demand for gold will rise phenomenally and at the same time, indications that the supply of gold is reducing seems significant. The international experts along with the South African industrialists as well as experts have dismissed the possibility of an increase in gold production.

Leading Canadian industrialist in gold and Former Chief of the World Gold Council, Pierre Lassonde, pointed out the declining gold production. ‘The mines found in the decades of 70s, 80s and 90s had gold reserves of 50 million ounces and 30 million ounces. Following which, not a single mine with such good reserves has been discovered,’ said Lassonde pointing towards the dwindling gold reserves.

Kelvin Dushnisky, the Chief of the gold mine ‘Barrick Gold’, known to be the largest mine in the world, also has warned that the gold production is on the decline and search for new gold mines has stopped. Ian Telfer, the head of Goldcorp, has also pointed out the reality of reducing gold production. ‘The current level is the highest and the level will only decline or may be it has already started reducing,’ warned Telfer.