SWOT Analysis: Where Will Gold Go From Here?

Strengths
The best performing precious metal for the week was palladium with a 7.14 percent gain. Bloomberg highlighted that automotive production in China grew 34 percent in September and 18 percent in October. As other gold investors are heading for the exit, billionaire hedge fund manager John Paulson has maintained his holding in the world’s biggest ETF backed by gold, reports Bloomberg. Even as gold prices posted their first quarterly loss this year, Paulson & Co. kept its holdings unchanged from June through the end of September. According to Bloomberg calculations, mine supply may fall about a third in the 10 years to 2025, with the number of newly discovered primary gold deposits already falling to three in 2014 from 37 in 1987, writes Mark O’Byrne. CEO of Randgold Resources, Mark Bristow, says gold production may peak in the next three years as miners fail to replace their reserves. The silver market is in the same boat, reports Reuters, with 2016 marking the fourth consecutive year in which the market has realized a physical shortfall. In Russia, in fact, silver production fell 9.4 percent year-over-year from January to September, and gold output declined 1.4 percent. BonTerra Resources announced this week that it has significantly extended its Gladiator Gold Zones by over 250 meters with ‘multiple intersections of high grades and meaningful widths.’ The Drill Hole BA-16-39 generated gold bearing horizons including an intersection of 70 g/t over 5.5 meters at the eastern extent of the deposit and over 600 meters in depth below surface.

This post was published at GoldSeek on 21 November 2016.