US gold mining production drops in 2007

The total quantity of gold produced by American mines fell by six per cent between 2006 and 2007, according to estimates by the US Geological Survey (USGS).

In its latest Mineral Commodity Summaries report, the organisation indicates that while the total value of gold mined in the US experienced an overall increase, mining production plunged from 252 tons in 2006 to 240 tons last year.

The figures appear to tally with a general worldwide drop in the production of gold bullion from mining, a trend that has partly helped to drive up prices and benefit those with gold investments.

According to the USGS' report, the average gold price quote for 2007 was $675 an ounce - up from $606 in 2006 and just $365 in 2003.

The research comes as numerous major gold mining firms issue warnings over their 2008 yellow metal production - Gold Fields and IAMGold have both said that they expect production to be lower over the next 12 months.

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