Today's gold miners face nearly insurmountable challenges on a myriad of fronts. It is really a wonder that any gold is produced at all when you consider just how difficult it is to bring new supplies to market.


For these reasons and many more, global gold production is actually falling despite the relatively high gold prices. Annual gold mined today, which is 70% of the world's supply, is running over 4% lower than when this bull began in 2001!


Central banks are not an apocalyptic threat for gold. Every year European CBs sell gold, which makes their "market share" of total above-ground gold dwindle. And every year more gold is mined, farther reducing CBs' relative footprint in the gold world. Thus with each passing year, with every tonne of CB gold sold, central-bank impact and relevance in the gold market gradually fades. They are nowhere near as big of threat today as they were in 2001 and with each passing year their positions continue to weaken.

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