Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Who Produces the World’s Gold?

  by    0   0

Which countries produce most of the world’s gold?

Gold mine output has flatlined over the last several years and that trend appears to be continuing in 2019. Gold production rose fractionally in 2018 by about 1% totaling 3,346.9 tons. That compared with 3,318.92 tons mined in 2017  — a modest 28-ton increase year-on-year. According to the World Gold Council’s Gold Demand Trends Q3 report, on a year-to-date basis, mine production ended the third quarter at 2,583 tons. That’s virtually identical to production levels at this point in 2018.

Looking at general the trend, we see signs of plateauing mine output over the last four years. According to the WGC, production was up 77.72 tons between 2015 and 2016, 33.92 tons between 2016 and 2017, and 28 tons between 2017 and 2018 and we’re on pace for little to no increase in 2019.

Gold production has generally increased every year since the 1970s. There was a drop in production in 2008, but that was something of an anomaly, as it occurred at the onset of the 2008 financial crisis. The recent slowdown in mine production is more concerning. In fact, many people speculate we may be at or near “peak gold.”

Peak gold is the point where the amount of gold mined out of the earth will begin to shrink every year. Some prominent players in the mining industry think we’re close to that point.

Over the last couple of years, several gold-mining executives have warned we have found most of the world’s minable gold. For instance, last year, Goldcorp chairman Ian Telfer said, “We’re right at peak gold here.”  And during the Denver Gold Forum in September 2017, World Gold Council chairman Randall Oliphant said he thought the world may have already reached that point. Franco-Nevada chairman Pierre Lassonde has also indicated he expects a significant dip in gold production in the coming years. And last spring, a report in Deutsche Welle made the case that we’re approaching peak gold.

Case in point – South Africa was once the world’s leading gold producer. It’s now dropped to number nine globally. Last year, a study came out saying  South Africa could run out of gold within four decades. Analysts say that at current production levels, the country has only 39 years of accessible gold reserves remaining.

So, which countries produce the most gold? Here are the rankings based on 2018 mine output according to the World Gold Council.

1. China – 404.1 tons.

China was the largest producer in the world in 2018 and accounted for around 12 percent of total global production. China has held the number one spot for the last several years. Production in China fell by 5% in 2018.

2. Australia – 314.9 tons

While production fell in many gold-producing countries, Australia was a trend buster. Output increased by 6.4% last year. The country accounts for about 9% of global production. Analysts say long-term output projections don’t look good.  MinEx Consulting released a report detailing an expected drop in gold output between 2017 and 2057 unless the amount spent on exploration is doubled.

3. Russia – 297.3 tons

Production was also up in Russia last year, with output increasing by about 27 tons. More than 80% of Europe’s gold comes from Russia. The Russian government is the biggest buyer of Russian gold. Much of the additional output last year was gobbled up by the Central Bank of Russia.

4. The United States – 221.7 tons

US mine production fell by 3.6% last year, snapping a four-year trend increasing gold output. The state of Nevada accounts for 78% of US gold output.

5. Canada – 189.0 tons

Canada was another country that saw a slight increase in gold production last year. The discovery of a significant goldfield in northern British Columbia in 2017 bumped Canada higher up the list of gold producers and could account for increased output in the coming years.

6. Peru – 158.4 tons

Peruvian mine output dropped by four tons in 2018. It was the third straight year of declining gold production for Peru.

7. Indonesia – 136.9 tons

Indonesian gold production plummeted by 17.4%. That follows on the heels of an 11.7% decline in mine output in 2017.

8. Ghana – 130.5

Ghana moved up two spots in the rankings, leap-frogging both Mexico and South Africa. The country produced nearly 30 more tons of gold in 2018 than it did in 2017. Ghana now ranks as Africa’s largest gold producer. Small mining companies account for the largest share of the total. Loosening government regulation and lower taxes have helped boost the countries mining sector.

9. South Africa – 129.8 tons

Output dropped again 2018, falling by another 10 tons. Once the largest gold producer in the world, today it isn’t even the largest in Africa.

10. Mexico – 115.4

Mexico has also seen a steep dropoff in gold production, with mine output falling 11.5% last year.

Download SchiffGold's Gold vs GLD EFT's Guide Today

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Will the Government Take Away Your Gold?

Is your gold at risk? Some people think it is. They believe the US government might one day come and confiscate their gold. After all, hasn’t it happened before? Well, not exactly.

READ MORE →

The Fed: Money Printing to Infinity and Beyond

After the June Federal Open Market Committee (FOMC) meeting, Fed Chair Jerome Powell committed to “do whatever we can, for as long as it takes.” Nothing has changed — the July meeting was rewind and replay.

READ MORE →

Goldman Sachs Warns Dollar Could Lose Its Reserve Status

For years, Peter Schiff has been warning about a dollar crash and the end of the greenback’s role as the world’s reserve currency. Suddenly, the mainstream is starting to see that possibility as well. In a recent research note, Goldman Sachs warned that the dollar’s role as the world reserve currency is at risk.

READ MORE →

US Mint Struggling With Gold and Silver Coin Production Slowdown

The US Mint is limiting the distribution of gold and silver coins to authorized third-party distributors due to production slowdowns. According to a Bloomberg report, the US Mint complex in West Point, N.Y., is taking measures to reduce the spread of COVID-19 among its employees and expects production slowdowns for the next 12 to 18 […]

READ MORE →

Gold Breaks All-Time Record!

Gold broke through $1,900 on Friday morning and kept pushing upward, setting an all-time record during Asian trading hours on Monday. Gold was trading as high as $1,944 an ounce early Monday. The previous record price for gold came in the third quarter of 2011 at just over $1,920 an ounce.

READ MORE →

Comments are closed.

Call Now