Gold is important for any country’s economy which is why all the countries want as much of it as possible. This is primarily because of its many uses and the value it brings with it. This over reliance on gold however, leads to many geopolitical conflicts and on the flip side the international events have a direct impact on the price of gold. You can confirm this by yourself. All you need to do is the next time there is a major geopolitical event look up today’s gold price in Varanasi or any other city and you will see for yourself how the price is affected. Visit this page for more info.
China – 406.8T
In 2020, China was the largest producer of gold in the world. The country produced 426.14 metric tonnes of precious metal, which is more than what second-place Australia produced (316.00 metric tonnes) by 110 metric tonnes. It is also the world’s largest consumer of gold. Its gold consumption stood at 1,199 tonnes in 2018, an increase of 2% compared to 2017. In addition to imports, domestic production supplies a part of its demand. Being the leader and being an active player in world politics and economy the decisions of the Chinese government could often be a local metric such as gold price.
Australia – 316T –
Australia’s gold production has been on a slight decline in recent years. In 2016, it produced 328 metric tonnes of gold, and that number dropped to 314 metric tonnes in 2019 before dipping further to 316 metric tonnes last year. Australia has been in the top three for some time now and it’s no surprise why – approximately 80% of the gold that’s mined in Australia ends up in Chinese vaults. This country is also one of the lowest-cost gold producers in the world, which is another reason why it makes this list so often.
Russia – 314T –
Production has been steadily increasing in Russia over the past few years, from 253 metric tonnes in 2016 to 271 metric tonnes in 2018 and finally to 314 metric tonnes last year.
United States – 255T
A little known fact about the U.S., which is the world’s fourth-largest producer of precious metal: The majority of its gold is derived as a byproduct of copper mining on the western slope of Colorado’s Rocky Mountains. However, its reliance on imports to meet domestic demand makes it a lot less significant player. It is the world’s largest consumer of gold, yet only 10-15% of the gold consumed each year originates from U.S. mines.
Canada – 193T –
Gold production has been on a slow decline since peaking at 208 metric tonnes in 2017 but remains at 200 or more per year since 2010 when it was just under 200 metric tonnes. The majority of Canada’s production comes from three main sources: Ontario (which produces mostly silver), Quebec and British Columbia (which produce a mix of gold and copper). Interestingly enough, Canada was one of the first countries to develop an offshore commercial mining operation.
South Africa – 183.5 tonnes
One of the largest producers of Africa, South Africa has been responsible for approximately 18% of global mine production since 1950. The country produces more gold than any other nation on earth with an output of 139 tonnes in 2018, according to the World Gold Council.
Mexico – 149 tonnes
Gold production in Mexico increased by 4 percent compared with 2018 to reach 149 tonnes last year. The country’s largest gold producing mine, Penasquito, is located in northern Mexico and produced more than 500,000 ounces of gold last year. It is owned by Newmont Goldcorp (NYSE: NEM), which owns 70 percent of Penasquito while Fresnillo holds 27 per cent and a Mexican silver company holds 3 per cent interest.
