Goldcorp's Next Takeover Target http://seekingalpha.com/article/3986669-goldcorps-next-takeover-target?app=1&auth_param=9mlr:1bnqgb3:d96da840eb6736c0cb27b39e764b3389&source=email_rt_article_readmore&utoken=c6e1cb22204858086431f7894295bba6#/alt1 As gold continues higher taking out the Brexit highs, one of the things in the gold sector that isn't increasing is the amount of gold discovered each year. While the price of gold has risen nearly 500% from 1990, over the same period the 3 year running average of gold discovered each year has dropped by over 80%. In 1995, the gold market reached peak discovery levels with nearly 140 million ounces of gold being discovered based on the 3 year running average. As of 2013 this figure sits at roughly 10 million ounces, and continues to trend lower. With declining discoveries made each year, it is nearly impossible for large cap gold companies reserves to stay at stable levels. Over the past 3 years, the gold miners GDX gold reserves fell from 550 million ounces to 460 million ounces. This represents a drop of over 15% in only a 3 year span, and this in turn affects production levels. This cycle is making it extremely difficult for large-cap gold companies to increase their earnings as despite a 20% rise in the price of gold, most gold majors are seeing 20% drops in forward production. The only way for gold majors to increase their production is by acquiring other gold companies to add to their reserves and their production profile. Unfortunately for the gold majors, none of them except Goldcorp GG have stepped up to the plate and done any acquisitions this year. I believe this is a huge mistake by gold majors as they are now paying double the price as they would have been in the first quarter of this year for the exact same gold companies.