The world’s gold mines are set to hit record highs in terms of production this year, which won’t help bullion prices recover much from this year’s 25% decline, Reuters reports.
A clear sign of this trend can be seen in the world’s top three gold miners’ latest results, with Barrick Gold TSX:ABX, Newmont Mining NYE:NEM and AngloGold Ashanti NYE:AU all reporting higher production.
Large gold projects put into motion during gold’s 12-year rally are set to start production in the new year, including new mine production and expansion in and around the Nevada gold fields and the Oyu Tolgoi copper mine in Mongolia, whose significant gold byproduct potential is estimated to be 330,000 ounces per year.
Add to the mix the fact that gold output in China, the world’s top producer of the yellow metal, is up 6.8% in the last nine months, as figures published November 20 by the China Gold Association show and the fact that the World Gold Council said recently that Q3 bullion demand hit its lowest level in the last four years. Then the outlook doesn’t look promising for gold bulls.
The Asian superpower has been the world’s top gold producer since 2007, when it churned out 270.491 tonnes of the precious metal and replaced South Africa in the number one spot.
The World Gold Council has forecast that China will overtake India as the world’s largest gold consumer this year. In 2012, Chinese gold consumption jumped 9.35% to 832 tonnes.
Reprinted by permission of MINING.com