Like any other limited natural resource, there is a finite supply of gold in the world.
At some point, the world’s supply of new gold will run out. The only question is how far away that day is.
Visual capitalist presented an interesting visualization of the world’s gold reserve, depleting production and they concluded that we will run out of gold by 2050. That is less than 3 decades away.
The largest single source of gold in history has been the Witwatersrand Basin of South Africa. This geologic formation is believed to be the result of an ancient meteorite and has produced over 1.5 billion troy ounces of gold since it was discovered in 1886.
Witwatersrand accounts for roughly 50 percent of the gold ever mined. The formation, however, has seen declining production since the 1970s. Recently, the total gold output of South Africa has dropped below 170 tons per year.
It’s also important to remember that the total amount of gold in the Earth’s crust and the total amount that can be feasibly mined are not the same. There are almost certainly massive gold deposits deep beneath the surface of the Earth that are too far down to be detected, let alone extracted.
One factor gold has going for it, compared to other non-renewable resources like oil, is that it can be recycled. Remember that gold doesn’t corrode. It is what it is even after millions of years. That’s precisely why it is the ideal metal for industrial uses such as phones and computers.
It’s also being used to treat cancer, dental procedures, make oxygen in Mars, and others.
So, we don’t exactly want the world to run out of metals. It is far too useful and needed in the world.
But, we can’t ignore the fact that its rarity makes it one of the best investments you can ever make.
For one, gold has history on its side. It is the only asset that has thrived through all economic crashes.
Next, demand outweighs the supply. From cellphones to medical uses to jewelries, gold and other precious metals have proven to be far too useful. Revenue in the Consumer Electronics segment is projected to reach US$415,897 trillion in 2021. And guess what’s inside every electronic device, gold, silver, platinum, and palladium.
So, invest in gold. And when you do, remember that Noble gold is here to help.