Gold Supply Is Peaking Out Right Now Says VanEck’s Foster

The mining industry is not seeing a steady discovery rate and gold supply is shrinking, warned Joe Foster, portfolio manager for VanEck’s International Investors Gold Fund (INIVX). “Mine supply of gold is peaking out right now – I expect to see a gradual decline for the foreseeable future,” Foster said. He underlined that there are some big projects such as B2Gold’s Fekola Mine in Mali or Cardinal Resources’ project in Ghana but the discoveries are not happening at the same rate as past cycles. “If you look at the production profile especially for majors, it’s topping out …going out four, five, six years, it starts to drop significantly. That’s why in the fund we are overweight in the mid-tiers and smaller cap companies– they don’t need a multi million ounce deposit to move the dial,” Foster said in an interview with Kitco News. (show less)

The mining industry is not seeing a steady discovery rate and gold supply is shrinking, warned Joe Foster, portfolio manager for VanEck’s International Investors Gold Fund (INIVX). “Mine supply of gold is peaking out right now – I expect to see a gradual decline for the foreseeable future,” Foster said. He underlined that there are some big projects such as B2Gold’s Fekola Mine in Mali or Cardinal Resources’ project in Ghana but the discoveries are not ... (read more)

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