Podcast #56 GoldMining Inc

What is up with the gold market? Gold mine production is now falling. Mine reserves for the gold mining industry are at a 30-year low. Yet the price of gold is languishing below the minimum price level necessary to sustain the industry.

Large-cap gold mining companies like to point to a statistic they call the “all-in sustainable costs” of their gold production. But those are fantasy numbers. They don’t take into account the price level necessary to support the junior gold mining companies who find almost all of the gold that is mined by these senior mining companies.

What price level is really required to sustain the gold mining industry, and thus the gold market itself? There is no precise answer to that question. But it became nearly impossible for these junior miners to continue to fund their operations as soon as the price of gold descended below $1,500/oz (USD).

While capital-raising became a little easier for these companies in 2016, depressing conditions persist throughout most of the gold mining industry. Where is the price of gold headed in 2018? What price level is necessary to sustain the gold mining industry, and replenish depleted reserves?

Stockhouse recently had the opportunity to “talk gold” with Byron King, an honours graduate in geology from Harvard University, and editor of the Gold Speculator. Byron will be talking to us today about his top pick for investors and why you should be excited to take advantage of it.

 

FULL DISCLOSURE: GoldMining Inc is a paid client of Stockhouse Publishing.