Jim Sinclair’s Commentary

Both energy and honest money (gold) are decreasing in supply as demand rises as a result of huge amounts of new consumers taking birth daily in Asia, a phenomenon not about to effervesce.

A perfect storm for gold as mines left empty
By Ambrose Evans-Pritchard, International Business Editor Last
Updated: 6:55pm GMT 15/11/2007

The era of 'peak gold' has arrived.

Try as they might, miners cannot find enough ore at viable costs to replace their fast-depleting reserves, even if they dig miles into the centre of the earth.

"There's not much gold out there," said Gregory Wilkins, chief executive of top producer Barrick Gold.

"Global mine supply is going to decrease at a much faster rate than people generally believe. Many of the new mines that people are anticipating will never come into production," he told the RBC Capital Markets gold conference in London.

"There is a great disparity between the money spent on exploration and success. It's hard to say where the price of gold is going because we're in uncharted waters. I would say it could easily move to $900, $1,000, or beyond. It could happen very quickly," he said.

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