Make Kitco Your Homepage

Can higher gold prices save mining?

Kitco News

Editor's Note: Get caught up in minutes with our speedy summary of today's must-read news stories and expert opinions that moved the precious metals and financial markets. Sign up here!

(Kitco News) - The gold mining sector faces a major challenge: overcoming dwindling economic reserves, said Brent Cook of Exploration Insights, and higher gold prices may not be what’s needed to keep miners in the black.

“The story is that we are going to run out of gold deposits. That’s not the case. What we are running out of is economic deposits, the discovery of economic deposits. There’s no shortage of marginal deposits or sub-economic deposits, and the question is, is the rising gold price going to fix all that or not?” Cook told Kitco News on the sidelines of the Precious Metals Summit in Beaver Creek.

Importantly, Cook noted his thesis is that 80% of deposits will be marginal at any price because they have fundamental flaws.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.