72 

GOLD 

(Data in metric tons1

 of gold content unless otherwise noted) 

Domestic Production and Use: Gold was produced at about 50 major lode mines, a dozen or more large placer 

mines (nearly all in Alaska), and numerous smaller placer mines (mostly in Alaska and in the Western States). In 

addition, a small amount of domestic gold was recovered as a byproduct of processing base metals, chiefly copper. 

Thirty mines yielded more than 99% of the gold produced in the United States. In 2004, the value of mine production 

was about $3.2 billion, about the same value as in 2003. Commercial-grade refined gold came from about 2 dozen 

producers. A few dozen companies, out of several thousand companies and artisans, dominated the fabrication of 

gold into commercial products. U.S. jewelry manufacturing was heavily concentrated in New York, NY, and 

Providence, RI; areas with lesser concentrations include California, Florida, and Texas. Estimated uses were jewelry 

and arts, 92%; electrical and electronics, 4%, dental, 3%; and other, 1%. 

Salient Statistics—United States: 2000 2001 2002 2003 2004e

Production: 

 Mine 353 335 298 277 247 

 Refinery: 

 Primary 197 191 196 196 185 

 Secondary (new and old scrap) 82 83 78 92 95 

Imports2

 223 194 217 249 400 

Exports2 547 489 257 352 500 

Consumption, reported 183 179 163 200 200 

Stocks, yearend, Treasury3

 8,140 8,140 8,140 8,140 8,140 

Price, dollars per ounce4

 280 272 311 365 410 

Employment, mine and mill, number5

 10,400 9,500 7,600 7,300 7,000 

Net import reliance6

 as a percentage of 

 apparent consumption E E E E E 

Recycling: 95 tons of new and old scrap, equal to about 50% of reported consumption, was recycled in 2004. 

Import Sources (2000-03):2

 Canada, 56%; Brazil, 11%; Colombia, 10%; Peru, 8%; and other, 15%. 

Tariff: Most imports of unwrought gold, including bullion and doré, enter the United States duty free. 

Depletion Allowance: 15% (Domestic), 14% (Foreign). 

Government Stockpile: The U.S. Department of the Treasury maintains stocks of gold (see salient statistics above), 

and the U.S. Department of Defense administers a Governmentwide secondary precious metals recovery program. 

Events, Trends, and Issues: Domestic gold mine production in 2004 was estimated to be about 11% less than the 

level of 2003, but high enough to regain the United States’ position as the second largest gold-producing nation, after 

South Africa. Domestic mine output continued to be dominated by Nevada, where production accounted for more 

than 85% of the U.S. total. Between July 2003 and August 2004, four gold mines were closed, and one mine was 

reopened in the United States. During this 12-month period, the average output per mine remained about the same, 

companies continued to merge, and the size of gold-mining companies increased. Most of the larger companies 

replaced annual production with new reserves, but smaller companies found this more difficult. Estimates by an 

industry association indicate that, owing to higher prices, worldwide gold exploration expenditures increased for the 

first time since 1997. The expenditures of U.S. gold producers for exploration also increased in 2003. 

Prepared by Earle B. Amey [(703) 648-4969, eamey@usgs.gov, fax: (703) 648-7757]
 73 

GOLD

During the first 9 months of 2004, the Engelhard Corporation’s daily price of gold ranged from a low of about $376 per 

troy ounce in May to a high of about $429 in April. For most of the year, however, this price averaged about $400. 

The Iraqi War in the Middle East and concerns about terrorism continued to keep gold prices at $400; however, the 

main U.S. dollar-denominated gold price driver was still the up and down movements in the U.S. dollar. The Central 

Bank Gold Agreement I (CBGA I) expired in September 2004, with just the Swiss National Bank left to sell less than 

60 tons of gold during the fourth quarter of 2004, which would complete its sales plans of 1,300 tons of gold (one-half 

of its reserves) for the period of the agreement. Other countries of Europe, however, were expected to join CBGA II. 

World Mine Production, Reserves, and Reserve Base: Data on reserves and reserve base have been revised 

downward from those previously published for the United States and upward for Peru based on mine closures in the 

United States and a report by the Peru Ministry of Energy and Mines.7

 Data for the “Other countries” category 

excluded some countries for which reliable data were not available. 

 Mine production Reserves8 Reserve base8

 2003 2004e

United States 277 247 2,700 3,700 

Australia 282 242 5,000 6,000 

Canada 141 171 1,300 3,500 

China 202 210 1,200 4,100 

Indonesia 140 120 1,800 2,800 

Peru 172 160 3,500 4,100 

Russia 170 180 3,000 3,500 

South Africa 373 344 6,000 36,000 

Other countries 830 800 17,000 26,000

 World total (rounded) 2,590 2,470 42,000 90,000 

Of the estimated 150,000 tons of all gold ever mined, about 15% is thought to have been lost, used in dissipative 

industrial uses, or otherwise was unrecoverable or unaccounted for. Of the remaining 128,000 tons, central banks 

hold an estimated 32,000 tons as official stocks, and about 96,000 tons is privately held as bullion, coin, and jewelry. 

World Resources: A recent assessment of U.S. gold resources indicated 33,000 tons of gold in identified (15,000 

tons) and undiscovered resources (18,000 tons).9

 Nearly one-quarter of the gold in undiscovered resources was 

estimated to be contained in porphyry copper deposits. The gold resources in the United States, however, are only a 

small portion of global gold resources. 

Substitutes: Base metals clad with gold alloys are widely used in electrical/electronic products and jewelry to 

economize on gold; many of these products are continually redesigned to maintain high-utility standards with lower 

gold content. Generally, palladium, platinum, and silver may substitute for gold. 

e

Estimated. E Net exporter. 

1

Metric ton (1,000 kilograms) = 32,150.7 troy ounces. 

2

Refined bullion, doré, ores, concentrates, and precipitates. 

 Excludes: 

 a. Waste and scrap. 

 b. Official monetary gold. 

 c. Gold in fabricated items. 

 d. Gold in coins. In 1991, the last year for which estimates are available, net imports amounted to 3.5 tons. 

e. Net bullion flow (in tons) to market from foreign stocks at the New York Federal Reserve Bank: 355.8 (2000), 259.5 (2001), 39.6 (2002), 

29.9 (2003), and 3.1 (2004, estimated). 3

Includes gold in Exchange Stabilization Fund. Stocks were valued at the official price of $42.22 per troy ounce. 4

Engelhard Corporation’s average gold price quotation for the year. 5

Data from Mine Safety and Health Administration. 

6

Defined as imports – exports + adjustments for Government and industry stock changes. 7

Ministerio de Energia y Minas, 2003, 2002 Anuario de la Mineria del Peru: Lima, Peru, December, p. 32. 8

See Appendix C for definitions. 9

U.S. Geological Survey National Mineral Resource Assessment Team, 2000, 1998 assessment of undiscovered deposits of gold, silver, copper, 

lead, and zinc in the United States: U.S. Geological Survey Circular 1178, 21 p. 

U.S. Geological Survey, Mineral Commodity Summaries, January 2005