72 

GOLD 

(Data in metric tons1 of gold content, unless otherwise noted) 

Domestic Production and Use: Gold was produced at about 53 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 2002, the value of mine production 

was more than $2.9 billion. Commercial-grade refined gold came from about two 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, 84%; dental, 8%; 

electrical and electronics, 7%; and other, 1%. 

Salient Statistics—United States: 1999 2000 2001 2002 2003e

Production: 

 Mine 341 353 335 298 266 

 Refinery: 

 Primary 265 197 191 194 185 

 Secondary (new and old scrap) 143 82 83 89 95 

Imports2

 221 223 194 217 220 

Exports2

 523 547 489 257 320 

Consumption, reported 245 183 179 163 150 

Stocks, yearend, Treasury3

 8,170 8,140 8,140 8,140 8,140 

Price, dollars per ounce4

 280 280 272 311 350 

Employment, mine and mill, number5

 10,300 10,400 9,500 7,600 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 50% of reported consumption, was recycled in 2003.

Import Sources (1999-2002):

2

 Canada, 54%; Brazil, 13%; Peru, 8%; United Kingdom, 5%; and other, 20%. 

Tariff: Most imports of unwrought gold, including bullion and doré, enter 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 secondary precious metals recovery program. 

Events, Trends, and Issues: Domestic gold mine production in 2003 was estimated at about 6% less than the level 

of 2002, but high enough to maintain the United States’ position as the world’s second largest gold-producing nation, 

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

more than 80% of the U.S. total. Between July 2002 and August 2003, two gold mines were closed in the United 

States. During this 12-month period, the average output per mine decreased, companies merged, and the size of 

gold-mining operations increased. Most of the larger companies were successfully replacing annual production with 

new reserves, but smaller companies were finding this more difficult. Estimates by an industry association indicate 

that worldwide gold exploration expenditures decreased for the fifth consecutive year, with 1997 marking the peak of 

exploration spending for the 1990s. The expenditures of U.S. gold producers continued to fall in 2002, but are 

expected to begin to increase in 2003 owing to the increase in the gold price. 

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

During the first 8 months of 2003, the Englehard Corporation’s daily price of gold ranged from a low of about $321 per 

troy ounce in April to a high of about $383 in February. During the year, this price range averaged $350. The Iraqi 

war in the Middle East and concerns about terrorism continued to prompt increases in gold prices; however, the main 

gold price driver was the up and down movements in the U.S. dollar. As the expiry of the Central Bank Gold 

Agreement I (CBGA) approaches September 2004, the Swiss National Bank continued selling 1,300 tons of gold 

(one-half of its reserves) joined by lesser selling from the Dutch and Portuguese Central Banks. German 

Bundesbank could be the next major gold seller, but is expected to wait until CBGA II. Concerns about central bank 

gold sales, prospects for more consolidations within the gold mining sector, and lack of renewed investor interest in 

gold will tend to keep gold prices depressed. 

World Mine Production, Reserves, and Reserve Base: 

 Mine production Reserves7 Reserve base7

 2002 2003e

United States 298 266 5,600 6,000 

Australia 273 275 5,000 6,000 

Canada 149 165 1,300 3,500 

China 190 195 1,200 4,100 

Indonesia 135 175 1,800 2,800 

Peru 138 150 200 650 

Russia 170 180 3,000 3,500 

South Africa 399 450 8,000 36,000 

Other countries 798 760 8

17,000 826,000

 World total (rounded) 2,550 2,600 8

43,000 889,000 

Of the estimated 145,200 tons of all gold ever mined, about 15% is thought to have been lost, used in dissipative 

industrial uses, or otherwise unrecoverable or unaccounted for. Of the remaining 123,000 tons, central banks hold an 

estimated 32,000 tons as official stocks, and about 91,000 tons is privately held as coin, bullion, and jewelry. 

World Resources: Total world resources of gold are estimated at 100,000 tons, of which 15% to 20% is a byproduct 

resource. South Africa has about one-half of all world gold resources, and Brazil and the United States have about 

9% each. Some of the 9,000-ton U.S. resource would be recovered as byproduct gold. 

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: 302.7 (1999), 355.8 (2000), 259.5 (2001), 

39.6 (2002), and 59.8 (2003 estimated). 3

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

Englehard 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

See Appendix C for definitions. 

8

Excludes countries for which reliable data were not available. 

U.S. Geological Survey, Mineral Commodity Summaries, January 2004