“In the last 9 years the reserve pricing used for 5 senior producers has gone from $365/oz to $1,200 ounce (+230%) while the gold price has only increased 184%. Mr. Wolfson found in the last 10 years the average reserve grade has decreased by 35%. Underground mines have had a huge drop from 8 g/t to the current level of 1.5 g/t.”
If gold demand picks up in the future gold prices will be forced to move higher in order to meet the demand through higher cost, lower grade gold deposits.
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