By: Mike Hammer
Even when a sector has dropped as much as gold, it’s important to remember that it won’t just go away. According to economic theory, the cure for low prices is low prices – this means when something gets cheap enough, someone steps in to buy it. With that in mind, our gold supply should be in good hands.
When gold prices drop – keeping in mind their long history of value – you know it’s just a matter of time before the buyers step in. Russia’s Polymetal announced that they’d poured their first bar of gold on June 25th from their northern Kazakhstan project a full quarter ahead of schedule. This mine is expected to produce 80,000 oz of gold this year and 280,000 oz in 2019 – that’s 8.7 tonnes for you central banker-types out there.
Russia’s central bank has been buying most of the gold produced in Russia over the past several years and we expect this trend to continue. This new mine gives them the chance to buy more gold easily if they want it. You can read all about it, and Polymetal’s next big project or two, in today’s featured article.