Gold is a precious mineral, just like crude oil. Precious, not only because it’s a noble metal and the high costs in producing, but also because of its varied usable applications; electronics, automotive, medical, etc. Is there enough gold left in our planet?
Data courtesy of GFMS and World Gold Council.
From the above picture, we can see that gold is being made available from 3 resources; sales from central banks, the traditional mine production and also from recycling. The most interesting resource is recycling. It has become an industry on its own. Electronics and electrical appliances and automotive components have gold elements in them. The fastest production car in the world, the Bugatti Veyron, has about a quarter kilogram of gold in its engine bay! No wonder it costs US$1.5 million.
Based on the above, its heartening to note that gold will not suffer the same fate as crude oil, since its recyclable and mother nature helps to produce and preserve it for our next generation.One kilogram of gold takes about 150 years to be formed underground. Dead trees, humans and animals, that are buried are being compressed by the tremendous pressure from earth’s crust to form layers of gold over a long period of time. Incidentally, a human being weighing 70 kilogram has got about 3 grams of gold element.