Just How Much Gold is There?
As a natural resource, gold’s value is largely determined by supply and demand. The fact is there is only so much minable gold on the planet and eventually supplies could run out. Some analysts believe that all of the available gold on Earth could be dug up within the next 20 years.
What does this mean for investors?
It means get your hands on some gold now while you still can.
Some estimates put the amount of gold available today at approximately 171,000 tons. What would this look like? Well, imagine a pile of gold covering a standard-size tennis court that is 10 feet tall. There you have it…
In that perspective, it doesn’t seem like so much now, does it?
Now, to be objective, some estimates put the amount of available gold significantly higher at over 2 million tons.
The problem is, no one knows for sure. Gold has been mined for so long; it may be very difficult, if not impossible to determine just how much gold we have already pulled out of the ground.
The reality is that it may not matter.
What may be of far more significance is how much gold is left to be mined.
According to one estimate by the U.S. National Geological Survey, there could be as little as 14,000 tons of gold that remain undiscovered.
When considering how much gold may have already been found, that’s not a lot of gold left, is it?
At some point, without any new discoveries of gold, the world’s demand for this essential precious metal will peak as do its supplies.
The simple supply/demand equation tells us that as demand increases and supplies reach the breaking point, prices may go higher. Much, much higher.
Think for a moment about a hurricane in the Gulf of Mexico. In recent years, natural gas production has been cut as producers have had to go off line due to hurricanes. What do natural gas prices do when supplies are threatened? They tend to rise. Why? Because demand is constant and supplies are falling.
Now imagine the world running out of gold. Rather than being a short-term production cut, however, the decrease in production could be permanent.
What do you think could happen to the price of gold?
Could gold rise by $100, $500, $1000 or even $5000 per ounce?
In our view – ABSOLUTELY.
The concept of supply and demand is quite simple, and the gold market follows the same rules as any other market.
The only question you must ask yourself is this: “Would I rather buy gold at $1200 per ounce or would I rather pay significantly more?”
Scarcity is just one of many reasons for gold’s potential appreciation.
What might happen to prices if central banks around the globe must compete for remaining supply? Prices could skyrocket, and any who buy gold at current levels will bask in financial security and wealth while those that didn’t act will be looking in from the outside.
Don’t let that happen to you.
Now is the ideal time to explore your options for buying gold. Acquiring and holding this precious natural resource has never been easier than it is today. If you are looking for a long-term investment that can potentially increase in value, protect your wealth and purchasing power and provide peace of mind, look no further. In fact, you can even set up a precious metals IRA or use an existing IRA account to begin building your holdings. Speak with an Advantage Gold account representative today. Our account executives will discuss your options and will guide you seamlessly through the entire process of setting up a new precious metals IRA or buying metals in your existing IRA. The clock is ticking, talk to an IRA advisor about how to roll over your 401(k) into a Gold IRA by opening a self-directed IRA account, contact us or call us at 800-341-8584 today.