68

GOLD

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

Domestic Production and Use: Gold was produced by about 200 lode mines, a dozen or more large placer mines

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

amount of domestic gold was recovered as a byproduct of processing base metals, chiefly copper. Twenty-five lode

mines yielded the majority of the gold produced in the United States. The value of 1995 mine production was

approximately $4.0 billion. Commercial-grade refined gold came from about 2 dozen producers. A few dozen

companies dominated the fabrication of gold into commercial products. Jewelry manufacturing was centered

principally in the New York, NY, and Providence, RI, areas; other concentrations of these businesses were in

California, Florida, and Texas.

Salient Statistics—United States: 1991 1992 1993 1994 1995e

Production: Mine 294 330 331 326 320

Refinery: Primary 225 284 243 241 240

Secondary 153 163 152 148 150

Imports2 154 159 144 114 115

Exports2 220 308 726 395 365

Consumption, reported 114 110 91 76 75

Stocks, yearend, Treasury3 8,146 8,146 8,145 8,143 8,143

Price, dollars per ounce 363.29 344.97 360.91 385.41 385.00

Employment, mine and mille 15,100 14,800 14,700 14,200 13,900

Net import reliance4

 as a percent of

apparent consumption EEEEE

Recycling: The U.S. Bureau of Mines estimates that approximately 150 metric tons of gold was recovered from the

total scrap recycled in the United States in 1995, including both manufacturing (new) scrap and post-consumer (old)

scrap.

Import Sources (1991-94):

2

 Canada, 70%; Bolivia, 6%; Chile, 5%; Switzerland, 4%; and other, 15%.

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 Government-wide secondary precious metals recovery program.

Events, Trends, and Issues: Domestic gold mine production in 1995 was estimated at slightly below the record

levels of recent years, but at a high-enough amount to maintain the U.S. position as the world's second largest

gold-producing nation, after South Africa. Domestic output continued to be dominated by Nevada and California,

where combined production accounted for nearly 80% of the U.S. total. The trend for recent U.S. gold exploration

activity, which appeared to have peaked in about 1988, continued to decline in 1995 as North American exploration

companies sought opportunities in other regions of the world. The principal focus of recent exploration activity has

been on several South American nations, where favorable geological terrains, combined with recently liberalized

mining regulations, hold the promise of greater long-term success and reduced risk to the currently limited pool of

investment capital available for international mining ventures. In addition, exploration and mine development

opportunities were actively pursued during the year in the southwestern Pacific, western Africa, and the republics of

the Former Soviet Union. 

Prepared by Errol D. Sehnke, (703) 648-4981.
69

GOLD

During the first 10 months of the year, the Engelhard Industries/London daily price of gold ranged from a low of about

$373 per troy ounce in January to nearly $397 in April. These extremes were nearly identical to the low and high

reported for all of 1994. This stagnation in gold prices was further reinforced during the September-throughmid-October period, when prices ranged narrowly from about $382 to nearly $387.

World Mine Production, Reserves, and Reserve Base:

Mine production Reserves5 Reserve base5

1994 1995e

United States 326 320 5,400 5,900

Australia 256 250 3,400 3,700

Brazil 76 80 700 1,200

Canada 146 145 1,300 3,300

Chinae 160 160 NA NA

Russia 147 150 3,100 3,400

South Africa 580 530 18,000 29,000

Uzbekistan 75 80 3,000 3,300

Other countries 500 500 9,300 11,000

World total (rounded) 2,300 2,200 644,000 661,000

Of an estimated 119,000 tons of gold mined from historical times through 1995, about 15% is believed to have been

lost, used in dissipative industrial uses, or otherwise unrecoverable or unaccounted for. Of the remaining 102,000

tons, an estimated 35,000 tons are official stocks held by central banks, and about 67,000 tons are privately held as

coin, bullion, and jewelry.

World Resources: Total world resources of gold are estimated at 75,000 tons, of which 15% to 20% are byproduct

resources. South Africa has about one-half of all world resources, and Brazil and the United States have about 12%

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 and jewelry products 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. NA Not available.

1

Metric ton (1,000 kg) = 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 metric tons; and (e) Net bullion flow (in

metric tons) to market from foreign stocks at the New York Federal Reserve Bank: 61.6 (1991), 136.4 (1992), 582.2 (1993), 216.6 (1994), and 300.0

(estimated, 1995).

3

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

Defined as imports - exports + adjustments for Government and industry stock changes. 5

See Appendix C for definitions. 

6

Excludes China and some other countries for which data were not available.

Mineral Commodity Summaries, January 1996