Absurd Idea of the Day: "We are Running Out of Gold"

For the second time in recent memory, concerns have surfaced about the supply of gold. Let's investigate.

The idea is ludicrous.

I do not blame ZH, he has a business model of posting controversial stories regardless of source. Who am I to argue with that business model?

The original story comes from Simon Black at Sovereign man. The "another billionaire" story also comes from Simon Black.

One does not have to read the articles to understand how absurd the headlines are.

Nearly every ounce of gold ever mined is still in existence.

Thus, the physical supply of gold increases every year. Yes, the profitably-mineable gold diminishes every year, but the actual physical supply rises every year.

Why? unlike silver and copper, gold is not used up. It accumulates.

There is no shortage of gold.

In fact, the World Gold Council says there is 190,000 tons of gold with still more in the ground.

The higher the price of gold, the more gold can be extracted. At $10,000 an ounce (not a prediction), the amount of in-ground gold will jump significantly.

The in-ground value is meaningless to the discussion actually. The significant fact is the supply of gold is $190,000 tons and rising.

Anyone who believes we are "running out of gold" is totally clueless. Moreover, spreading falsehoods to support of one's position never does any long-term good.

Mike "Mish" Shedlock

No. 1-21

Mish, if you had bothered to read the linked article, you would have seen that it's talking about running out of easily mine-able gold, not the actual supply above ground. Your title to this article suggests you are also engaging in the same type of click-bait style language as the linked article.


Of course - acting man. Unfortunately my deteriorating health doesn't permit me to post as often as I used to, and I have confined myself mainly to market commentary lately (I also publish other authors). In the past I posted on history, economic theory and politics as well, and I intend to get back to broadening the scope again. Anyway, you might want to keep an eye on it.


Silver and copper get "used up" in the sense that it's not economical to extract them once they have been already used.


Silver and copper do not get "used up". They may get put into products more than gold but the metals still exist.