June 27, 2012 7 Comments

The Gold Series: Mining and Supply (Part 2)

The History of GoldGold Mining and SupplyGold Uses and DemandGold as an Investment2012 Gold Deposit Rankings

The Gold Series: Mining and Supply (Part 2)
The History of GoldGold Mining and SupplyGold Uses and DemandGold as an Investment2012 Gold Deposit Rankings

The Gold Series: Mining and Supply (Part 2)

From ancient times to famous gold rushes, gold was first discovered in placer deposits. Placer gold occurs when host rock weathers and releases gold particles that travel downslope to a hillside, canyon mouth, or streambed.

Today most gold comes from hard rock deposits where gold is disseminated or associated with other metals and mined either through open pit or underground mining. Gold deposits form when gold is dissolved in hot pressurized fluids deep in the crust, and then transported upwards on fissures and cracks where it is deposited closer to surface.

90% of gold produced today is recovered through the cyanide leaching process.

There are three distinct streams that make up supply: official sales, recycled gold, and mine production. There has been a 571% increase in gold purchases from central banks from 2011 to 2010. Since the 2008 financial crisis, more people have opted to recycle gold as well. Recycling has increased 93% from 2002 to 2011.

Gold discoveries are declining and it is becoming more expensive to find gold. Data also shows that the grade of underground and open pit gold mines are decreasing over time.

View Part 1: A History of Gold

7 Responses to “The Gold Series: Mining and Supply (Part 2)”

  1. Darryl Gowens says:

    Looking for buyers, and sellers of Gold Mines and Bullion. Can someone help!

  2. Marleen says:

    Compliments! Looking forward to the rest of the series

  3. Ravindra says:

    Hi,

    Can any one tell the estimated gold that is held in mines?

  4. Chris says:

    This is a great series and very informative – Pretty amazing that China has 7X more gold reserves than the US. Looks like they are positioning themselves to go onto the gold standard and become the new reserve currency that the US has enjoyed being for the past 70 years.
    Invest in gold with your IRA – http://www.PremierGoldIRA.com

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