Gold’s scarcity starts in Earth’s crust; only some deposits are profitable at prevailing gold prices. Gold mining requires exploration, development, extraction and processing. Labor and energy add to mining production costs. New mines take years, so mine production generally responds slowly when prices rise. (World Gold Council)
But mining isn’t the whole supply story. Gold’s durability and corrosion resistance preserve much of history’s output in above-ground gold stocks. Owners can sell existing holdings, while melting jewelry, industrial scrap and other products produces recycled gold without new mining. (World Gold Council)