Silver as an investment

The Big Squeeze Continues in the Top Gold Miners

Be prepared for the next great transfer of wealth. Buy physical silver and storable food. / By Steve St. Angelo / May 23, 2013

The results are finally out and 2012 proved to be another record year for the continued squeeze in the top 5 gold miners.  Not only did gold production decline 1.3 million ounces from the top 5 year-over-year, their average yield dropped another 6%.  As gold yields continue to decline, it causes more stress for the mining companies.  Thus, it takes more energy to produce the same or less gold.

This is indeed the major problem facing the gold mining industry going forward.  Below we can see just how much average gold yields have declined in the top 5 gold miners (Barrick, Newmont, AngloGold, Goldfields & GoldCorp):

In 2005, the top 5 miners were producing gold at an average yield of 1.68 grams per tonne (g/t), but by 2012, it had fallen to only 1.22 g/t.  In just seven years the average yield declined 27% or nearly 4% per year.  However, from 2011 to 2012 the average yield fell an additional 6%


Thanks to BrotherJohnF