Australian Gold Production Forecast To Increase 10% This Coming Year

Largely because of Newmont's planned production increase at its Boddington mine, gold production from Australia is expected to increase by 10% in the 12 months ending June 30, 2011.


It's only a forecast, but it's one worth noting. One of the reasons proffered by gold bulls for a contimuation of the bull market is diminishing supply. If that argument is upended, as it's beginning to be, then one reason for gold rising will have eroded. World gold production from mines, according to the World Gold Council, was up 6% in 2009. The "peak gold" case is looking a little vulnerable in the nearer term, as mines ramp up production to take advantage of high prices before high costs bite them once again. That vulnerability may only be apparent if tomorrow's production is being pushed forward to today's, but the resultant increase would still have a damping effect on the price.