According to Thomson Reuters GFMS, price for gold may considerably rise against the background of gold production narrowing in 2016.
As analysts from Thomson Reuters GFMS say, the total output of yellow precious metal has demonstrated its growth for seventh consecutive year in 2015, reaching 3155 tons. Decrease in world production by 3% is expected this year, resulting from decrease in price for gold, which became cheaper by 40% comparing to the peak level in 2011. Reduction of quotes for precious metal led to cutting of gold miners’ profit, and they had to diminish new projects investments considerably.
Production growth of 2015 was supported by financially stabile projects, put into operation in previous years. World production of gold may considerably decrease in future on the background of old assets depletion and reduction of investment projects.
Meanwhile, with steady growth of precious metal consumption in the market, the deficit is going to appear, providing further growth of gold in the medium and long term.
Source: MetalTorg.Ru