Very interesting article on what shape the gold mining market is these days…-A.M.

Dear Reader,

goldbars3There’s a clear pattern in gold mining, with producers being forced to go after lower-grade deposits. You could call this Peak Gold. We have a look at the trend and its implications below.

First, I want to let all of you who have been writing with questions about our Hard Assets Alliance bullion service know that we’ve set up an email hotline specifically to answer these questions: We’d actually like to encourage everyone to send in questions, especially those who’ve had a look at the Hard Assets Alliance but aren’t sure if it meets their needs; we’d like to hear about concerns and improve upon the service to better meet clients’ needs.

I also want to mention that there are new Casey phyles starting up—one in Bangkok and one in Mallorca (its coordinator travels and is willing to coordinate meetings throughout Spain). Email inquiries should be directed to

Now, on to the main event—I hope you find it as informative as I did.


Louis James
Senior Metals Investment Strategist
Casey Research

Rock & Stock Stats
One Month Ago
One Year Ago
Gold 1,377.20 1,290.40 1,617.10
Silver 23.26 19.94 28.21
Copper 3.34 3.19 3.38
Oil 107.33 105.69 95.89
Gold Producers (GDX) 29.79 25.65 45.65
Gold Junior Stocks (GDXJ) 48.85 39.18 82.24
Silver Stocks (SIL) 15.82 12.63 19.72
TSX (Toronto Stock Exchange) 12,736.92 12,516.89 12,032.58
TSX Venture 940.23 910.84 1,221.25


Peak Gold

Andrey Dashkov, Research Analyst


In the mining business, it is said that grade is king. A high-grade project attracts attention and money. High-grade drill intercepts can send an exploration company’s stock price higher by an order of magnitude. As a project moves to the development stage, the higher the grade, the more robust the projected economics of a project. And for a mine in production, the higher the grade, the more technical sins and price fluctuations it can survive.

It is also said that the “low-hanging fruit” of high-grade deposits has all been picked, forcing miners to put lower-grade material into production.

You could call it Peak Gold—and argue that the peak is already behind us. Let’s test that claim and give it some context.

One of the ways to look at grades is to compare today’s highest-grade gold mines to those from the past. We pulled grade data from the world’s ten highest-grade gold mines for the following chart.

Continue Reading…