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In 1971, President Richard Nixon changed the rules of money because foreign countries being paid in U.S. dollars grew skeptical when the U.S. Treasury was printing more and more money to cover our debts, and they began exchanging their dollars directly for gold in earnest, depleting most of the U.S. gold reserves.
There’s been a significant under-investment in exploration by the world's major gold miners and it has resulted in a decline in minable gold. Today’s guest explains that there has been a 40% decline in gold reserves.
David Garofalo, Chairman & CEO of Gold Royalty Corp. says, “What they didn’t do is replace what they’ve been depleting.” He continues, “Our assets have been depleted and as a result, the production is declining. We can’t respond with supply because it takes a long time to find deposits, it’s capital intensive, and it’s risky.”
Host Robert Kiyosaki and guest David Garofalo discuss what the declining gold reserves mean for the future of gold mining and its price.