Gold News

Aussie gold production drops

Gold mining production in Australia saw a four per cent fall during the last three months of 2007, according to a new report.

Statistics compiled by research firm Surbiton Associates have shown that the country produced some 63 tons of the yellow metal during the quarter, significantly lower than in the same quarter of 2006.

Annual output fell by a ton to 248 tons in 2007, with Surbiton director Sandra Close highlighting an increase in the average gold price from A$585 ($547) an ounce to A$830 ($776) last year, the Age reports.

It is not just a slowdown in gold supply that is responsible for the surge in gold prices in recent times - a combination of factors including the weakening US dollar, the international political climate and rising demand in emerging countries such as China have all had their part to play, it has been claimed by a number of experts.

And those with gold investments could be set to benefit from even higher prices in the future - Dr Close said that gold production levels in South Africa will continue to suffer as a result of ongoing power problems.

"Some reports suggest that South African gold production will fall 15 per cent to 20 per cent even if power levels can be maintained at 90 per cent," she commented.

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