While gold may not be the first thing you think of when you think of Canada, there are reasons to believe that the Canadian gold sector may just be on the precipice of making it big. So much so that it wouldn’t be an exaggeration to say that Canada might just be the home of the next great gold rush.
Now, we understand if many of you are a little skeptical about this. Considering the size of the claim, you may want a little more information on how this is possible. To help you better understand the potential of Canada’s gold sector, here are the three most important reasons why Canada might just be the most exciting region for gold for the foreseeable future.
Peak Gold Supply
Many of you may not be familiar with what “peak” gold supply means. Essentially, it means that we’ve been pulling gold from the ground faster than we can replace it through new discoveries. This becomes evidently clear when you realize that we’ve mined 1.84 billion ounces of gold but have only managed to discover 1.66 billion ounces from 217 deposits. This has created an obvious deficit. The main thing you have to understand about peak gold is that it’s all about how much gold is reasonably and economically recoverable, as it refers to the point where gold production reaches its maximum limit and starts to tailspin as production will decline rapidly.
Stellar Discovery Record
Another key reason for the potential gold rush comes in the form of the country’s stellar discovery record. Companies like Starr Peak have kicked off a massive drilling campaign that is estimated to yield 10.1M tonnes of 2.15% Cu, 5.12% Zn, 0.549 g/t Au, and 45.25 g/t Ag. This number is based on their drilling campaign of the Normétal Mine. To add to this, Amex has also announced the discovery of a new high-grade gold structure. Thanks to these developments, the country’s estimated gold production is at an all-time high, which gives speculators a lot of reasons to be optimistic.
Great Macro and Micro Setup
Lastly, we can’t ignore the role that macro and micro trends play in all of this. The trajectory of the United States federal budget, while worrying for them, is great for gold. The debt burden is ballooning in the trillions which will surely force the Treasury to refinance the ever-growing debt at progressively increasing rates. If you think this isn’t indicative of anything, do note that gold and debt have always displayed a correlation as gold hit an all-time high in 2012 under similar economic situations.
Hopefully, this article has helped you better understand Canada’s potential in the gold industry. As you can see, there’s a lot of information that backs up Canada as the next big region for gold. While some things are too good to be true, these reasons are more than substantial and indicate how well this industry will be doing in the years to come.
If you want to learn more about the Canadian gold sector, then you’ve come to the right place. Newfoundland Gold is an alliance of companies focused on the advancement of mineral exploration and mining projects in Canada’s Newfoundland. For more information on this, visit our website today!