From CEO.CA:
“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.
Click over to read the rest: Gold grades declining rapidly: Dundee