According to Stephen Letwin, CEO of IamGold, we could be at peak Gold right now because the industry has already exploited its best reserves.
Global gold production in the first nine months of 2012 fell 1 percent from a year earlier to 61.5 million ounces, according to Bloomberg. The average ore grade of reserves at 12 large producers including Iamgold fell 51 percent to 0.028 ounce per ton in 2011 from a decade earlier, the data show.
“One of two things has to happen” for gold miners, Letwin said. “Either we stop as an industry pursuing it because the costs keep rising at a faster rate than the price, or the price of gold has to go up to reflect the cost inflation.”….The largest gold miners “need to replace production, and as much as they find it vulgar they are going to have to go to lower-grade,” Letwin said.