Peak Metal AG, Au and Cu19 Nov 2023 08:32
“ Peak metal
Gold, silver and copper all have supply challenges in common that suggest each has reached a peak level of mine production. For gold and silver, the mining industry is currently unable to mine enough to meet annual demand, without recycling.
The case for peak gold, silver and copper
As for copper, we are quickly approaching the lower limits of cut-off grades, meaning that we are almost at the point where reserves cannot be grown at all. In other words, peak copper.
The copper industry is in the grips of a structural supply deficit that, combined with inflationary cost pressures and resource nationalism in some of the world’s largest copper producers, is only expected to get worse.
Global shortages of the metal could reach 8 million tonnes by 2032, as soaring demand fails to be matched by new copper mines. The rate of supply increases required, is equivalent to building eight copper mines the size of Escondida, the largest in the world, per year, for the next eight years. That’s insane.
When you combine the expected deficits for these three metals with increasing industrial demand for copper and silver (due to the greening of the world economy) and higher investment demand for silver and gold, once the Federal Reserve realizes it can’t raise interest rates any more without breaking the Treasury, causing the US dollar to slide, the prices of gold, silver and copper are all but guaranteed to go up. ”
Worth a skip read…
https://aheadoftheherd.com/positioning-in-metals-for-economic-recovery-richard-mills/
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