Newmont Mining CEO Goldberg said on CNBC this afternoon that by 2020, there might be an undersupply of gold because there has not been sufficient investment (my interpretation). In other words, demand might exceed supply due to insufficient cap spending now. Again my interpretation. He mentioned increased demand from India and China. Sorry I don't remember his exact words, but it was music to my ears.
I don't buy this type of argument about gold. Because very little gold is actually consumed, almost all of the supply of gold is already above ground, with mining adding only a small increment each year. What I do buy is that there will be a increasing shortage not of gold itself, but of new deposits that can be made into mines.
LC
