"Kitco News continues coverage of PDAC 2015 with Dundee Capital Markets' Martin Murenbeeld to see why he says the U.S. Federal Reserve will not make any significant policy moves. "Our forecast is actually that gold will go up a little bit against the U.S. dollar because the Fed isn't really going to tighten in any significant manner," he says, adding that he only expects the Fed to raise rates by 25 basis points. "What is 25 basis points? I mean, it's like an absolute nothing with respect to impact on the U.S. economy," he says. "So it's really an announcement effect and we think the market has discounted it," he adds. Looking to the resource sector, Murenbeeld says sentiment is now 'constructive' and says investors should start looking at the industry again. "We have been telling our clients that this is a good year to start averaging in again into the resource sector." Tune in now to see if he thinks a bottom is in for the industry. Kitco News, March 4, 2015."
"Gold production is expected to peak in 2015. As the next chart suggests, the discovery cycle peaked some 20 years ago, and that will only reflect as of this year in the production volumes. Combine this with the falling gold prices (currently right below the average cost of production), and the result is a series of liquidations of miners and mining projects which would lead to an even more drastic short-term decrease of gold output."