A few years ago, all anyone talked about where natural resources where concerned was Peak Oil— the idea that we had produced the maximum numbers of barrels of oil that we ever would as a race in a given year. Fortunately for everyone, this turned out to be a premature call on oil.
Yet one resource call that has received far less attention and yet which will have also dramatic repercussions is that of Peak Gold. According to a recent statement from the World Gold Council chairman in Denver, the world has already produced the maximum amount of gold which it ever will in a single year.
In fact, Peak Gold has already hit, according to World Gold Council Chairman Oliphant. In the most optimistic scenario possible, gold production has plateaued. From here it will slowly enter into decline at the same time as global demand continues to rise.
This is especially likely to be the case as grave global geopolitical risks are rising on a seemingly daily basis, Randall Oliphant declared. Meanwhile, the Chinese and Indians now have an ever-increasing amount of money with which to purchase culturally important and valued gold bullion:
“It’s not clear how the whole U.S. political system will play out. All this uncertainty seems very fertile ground for people to get into gold.”
Oliphant carried his arguments at the Denver Gold Forum further. He told the attending hedge funds, bankers, mining executives, and analysts that gold prices could reach $1,400 per ounce over the coming 12 months. In the medium term, they could eclipse the record highs set in 2011 of around $1,923.
Other industry insiders concur with Oliphant. Chief Executive Officer David Harquail of Franco-Nevada Corporation agreed that the gold industry is in an ex-growth period. The sobering reality is that the new mining projects coming online are only managing to replace the older failing assets which are essentially tapped out of gold ore. Harquail warned:
“We’re not going to fall off a cliff in the near term, but at the same time it’s really hard to see how we’re going to produce enough gold to meet all this demand.”
The rising demand for gold is justified by the phrase that you own gold for all of those “I don’t knows.” No one can say with any certainty whether or not North Korea and the United States will fight a conventional or nuclear war in the Peninsula in the near or medium-term future.
No one knows if America will finally default on its incomprehensible over $20 trillion in debt that it can never hope to repay. You also don’t know if the Federal Reserve central bank will seamlessly manage to unwind its unwieldy $4.5 trillion balance sheet while raising the benchmark interest rates off of all-time lows without setting off a chain of devastating events throughout American and global financial markets.
Is Your Retirement Portfolio Protected from the Advent of Peak Gold?
When you keep all of your assets entirely in dollars, euros, pounds, or even Swiss Francs, you are arrogantly declaring that you do know exactly what will occur in the future. You are stating that everything will always be as it is, so that you do not require even the slightest amount of retirement portfolio hedging for today, tomorrow, or ever.
This would of course be a ludicrous series of statements to make in the world we live in today. Gold commands a more than 5,000 years long history of safeguarding people and their assets in times of terrifying geopolitical and financial calamities. Click here today to receive your no-cost and no-obligation gold IRA rollover kit from world leading gold firm Regal Assets that will allow you to obtain all of the critical information that you need to protect your retirement accounts through a partial diversification of your IRA retirement assets into physically owned gold.