Peak Gold

If world supply of gold is now past its peak, the bull run for gold on world bullion markets may have some distance to travel, This is the interpretation of this article in the Telegraph which reports that global gold output has been falling by roughly 1m ounces a year since the start of the decade. Total mine supply has dropped by 10pc as ore quality erodes, implying that the roaring bull market of the last eight years may have further to run. This BBC video report looks at the decision of India’s government to purchase of 200 tonnes from the International Monetary Fund - the single biggest gold purchase by a central bank in the past 30 years. The government is exchanging US dollars for their gold equivalent - a hedge against rising world inflation and a weakening dollar.