More data is now being released showing that although gold exploration is increasing year by year, actual gold production and grade quality is declining year by year.

If this is true, and if the projections charted here (Business Insider) are correct, then the price of gold to consumers and collectors will also inevitably rise year by year into the future.

Probably the most interesting of the charts presented shows that the decline is a worldwide, not a national phenomenon -  in other words, countries like the USA, South Africa and Australia which have traditionally fed the market with as much gold as it wanted can no longer do so, despite high exploration budgets.

The analogy is with Peak Oil, but of course gold is different to oil in that it is not 'consumed' - most gold ever mined still exists, and is still available. This mitigates the effects of declining production, but gold prices (or, when you come to sell, gold value) seem certain to rise in the medium and long term, with rising population and rising demand.

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