As the mainstream media watches “digital gold” melt down and inflation fears intensify…
Americans everywhere remain blissfully unaware about the looming shortages of real gold – which some consider the only true form of money – that might one day threaten the economic security of the United States.
It’s called the “Gold Supply Cliff”…
And this growing imbalance of supply and demand is putting serious pressure on the top gold mining companies in the world.
How did this happen?
As a business model, most majors like to let the junior mining companies take all the risk of finding new deposits…
Then, once the juniors have struck gold, they’ll buy the reserves and develop the mine.
When new deposits are being found, the “growth through acquisitions” model works well.
However, for the past 20 years, explorers have failed to find a single deposit above 30 million troy ounces…
Over the previous three years, there have been zero gold discoveries above 2 million troy ounces…
And the markets are noticing:
- The price of gold has climbed from under $1,200 four years ago to a record over $2,000 (and hovers around $1,800 today).
However, despite this increase in gold prices, exploration budgets have been decreasing for eight years.
Why? Because Major gold producers are accelerating production of existing resources to take advantage of the higher gold price.
But the tradeoff is they’re exhausting their reserves and resources.
The small number of mines that can generate more than 10 million troy ounces – known as world-class deposits – are running dry…
And because of this large imbalance of “gold demand” vs “gold supply,” experts and analysts are sounding the alarm…
The world is running out of new gold!
Every year, the US exports more gold than we produce.
Without a major new gold discovery to replace the “dying” mines, it’s only a matter of time before the laws of supply and demand start to put upward pressure on prices.
And now that it appears like the US is fighting a new “Cold War” with China over precious metals…
We need more natural resources that are closer to our borders (and under friendly government jurisdictions).
To make things worse, thanks to a few decades of infrastructure investment, China is gaining access to new gold production in Africa as well.
Add it all together, and the US has every reason to start looking for gold in its own backyard.
And one elite team of gold explorers believes they may have a solution…
- A property they hope will turn into a world-class deposit and hold millions of ounces of gold…
Sincerely,
Jake Hoffberg – Publisher
Equifund
