The World Gold Council says that deposits of the precious metal are getting more difficult to find and that mine production is likely to slow in coming years.
While %Gold production is currently in overdrive with the metal’s price hitting all-time highs, the World Council says that mine production peaked in 2018 and there’s been no growth since then.
According to the trade association’s latest data, gold mine production rose only 0.5% year-over-year in 2023 despite the price of gold reaching a record high above $2,400 U.S. per ounce.
While gold mining rose rapidly in the decade between 2008 and 2018, the mining industry is now struggling to sustain production, says the World Gold Council.
The problem is that new gold deposits are becoming scarcer and harder to find around the world, while existing mine sites are reaching the end of their production life.
At the same time, large-scale gold mining is capital-intensive and it can take as long as 20 years to bring a new mine online.
Currently, only about 10% of gold discoveries have sufficient metal deposits to justify developing a mine site.
Around 187,000 metric tons of gold has been mined to date, with the majority coming from China, South Africa and Australia.
Remaining gold reserves are estimated at around 57,000 tonnes, according to the U.S. Geological Survey.
Analysts say the current situation could lead to higher gold prices as the world’s available supply of the precious metal dwindles.
The price of gold is currently at $2,324.80 U.S. per ounce. The price peaked at an all-time high of $2,450.05 U.S. in May of this year.