According to analysts, Australia might just become the second-biggest producer of gold in the world. The number 1 position has been held by China for a long time now it seems Australia has outpaced Russia for the 2nd place spot and if things continue to go as they are with inflation, war and other factors silver and gold will continue to be an important asset. More people will be looking to buy these precious metals to protect themselves against the devastating effects of a depreciating global economy and with the cost of living rising as it has been, more people will be looking to liquidate their silver holdings so they can get cash when they need to.
It might be too early to call Australia the second-biggest gold producer, not with so much uncertainty in the world. We also need to take note that a number of gold miners in different countries were affected by the lockdowns and supply restrictions and now, the Russian war against Ukraine which has resulted in the withdrawal of foreign-owned mines like Kinross from Russia.
Last year, Australia increased its gold mining output to 315 tonnes. This was a little lower than what was predicted. There are a number of factors why the gold price aud is where it is. Right now, China still occupies the no. 1 spot but a lot of time has passed and in the meantime, China might have slipped. With sanctions imposed on Russia, imports and exports cannot be delivered which creates further issues with the rest of the globe.
Around 2020 and 2021, Australia recorded that its annual production of gold will drop o by 4 percent or 12 tonnes. There are a number of factors weighing on the price movement of gold. Production might have declined because of the closure of borders from 2020 to 2021. Australian gold producers continued to perform under difficult circumstances. The gold price aud responded buy to the difficulties by going up. There is still a shortage of workers, long-haul drivers, supplies, distribution networks, and more.
The biggest refinery in Australia is the Perth Mint, it produces some of the country’s iconic bullion n coins. In March, the Mint reported that Australians had bought out a lot of silver and gold. The Australian mint ranked silver as the third most popular precious metal amongst Australians. In March, the LBMA increased the price of gold by 1.7% and 1.9% for silver.
The Perth Mint reported that it had 121,997 ounces of gold coins and bars. They expected the sale of these precious metals to go even higher because of the Russia-Ukraine crisis.
The price of gold in 2021-2022 has been very supportive, especially in terms of the Australian dollar. The 315 tonnes of gold produced in 2021 was valued at A$25.5 billion – giving Australian exports a much-needed boost.
With the Chinese gold production falling off and Russia trying to take over Russia and taking a serious economic beating for it, things will continue to look good for Australian gold. It might just reach that coveted number 1 spot of being the highest gold producer in the world.