Friday, July 8, 2011

High quality gold deposits becoming more precious

Investors riddled with doubts will be relieved of their high quality gold shares by those that understand gold and the dynamics behind it.

Headline: High quality gold deposits becoming more precious

Global gold production may have hit a record last year, but that doesn’t mean the stuff is getting easier to find. Clarus Securities analyst Laurie Curtis wrote that the growing difficulties in finding gold suggest that high-grade deposits will command a stronger premium over time.

Citing data from the Society of Economic Geologists, Ms. Curtis noted that the number of deposits and total ounces found peaked in the 1980s “and have been steadily declining ever since.”

Additionally, the cost of discovery has increased from US$10 per ounce in the 1980s to more than US$47 an ounce in 2009, and there has been a decline in the average gold mining grade from 10 grams per tonne (in 1965-1975) to less than one gram in 2008, according to the data.

Source: financialpost.com

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