Peak Gold

peak-goldPeak Gold is a concept, which is accepted as fact by most geologists, that talks about the total amount of gold encased in the planet.  Once we reach the halfway mark, which is to say that production has reached its maximum rate of extraction, then there will be a decline in gold extraction and production as it will become more rare to find and work with.

This decline in the production is not a temporary phenomenon.  It is terminal.  There will eventually be no more gold left to be found by anyone, and especially by us small timers.  This whole idea comes from an economical idea called the Hubbert peak of any commodity or resource.  Luckily, unlike some resources that are destroyed when they are consumed, gold is recycled and reused.  Once we extract all of the gold, we will still have all of the gold, although it is likely to ultimately end up all locked away in some government facility.

Supply and Demand and Peak Gold

The supply and demand in regards to peak gold will determine when we approach this critical moment.  If the world gold demand increases, we will find ourselves at the peak gold moment a lot sooner than if it decreases.  Luckily, since gold is reusable and recyclable, old gold can help fulfill the gold demand by trading and selling.  It doesn’t all have to fall on gold extraction and recovery.

It has been theorized that we could have possibly already hit the gold peak, but production costs have continued to decrease which says otherwise, although this can be related to the cost of increasingly efficient technology production as well.  It is hard to say if we will ever know when we actually cross the peak gold threshold or not.  But expect the cost and work for recovering gold to increase when it happens!

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