FX.co ★ World might run out of gold

Gold mining companies face a notable decline in prices and cost efficiency. In September 2011, an ounce of the noble metal was worth $1,920, but now its price shot up to as much as $1,600. Experts fear that, mines will be shut down if gold production expenses near the gold market price.
Thus, South African gold producers Harmony Gold, Anglogold Ashanti, and Gold Fields have to struggle to extract ore rich in this precious metal, as gold content has shrunk from 6 grams to 2 grams.
David Davis, a SBG Securities Ltd. gold analyst, thinks gold output at leading mines of the Republic of South Africa will be contracting. He said as gold fields are wearing out, the ore-bearing stratum is getting thinner, causing high production costs and astonishing depths to which miners have go to extract gold.
It is worth noting that today gold extraction expenses incurred by gold miners constitute about $941 per ounce versus previously reported $626.
According to Eberhardt Unger of Fairesearch company, should the gold price keep declining towards this benchmark, gold producers will have to cease extraction, which, in its turn, will hike the price for the yellow metal because global demand exceeds supply.