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GOLD

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

Domestic Production and Use: Gold was produced at about 70 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 90% of the gold produced in the United States. The value of 1999 mine production

was about $3.1 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 the New York, NY, and Providence, RI, areas with

lesser concentrations in California, Florida, and Texas. Estimated uses were: jewelry and arts, 79%; electronics, 4%;

dental, 2%; and other, 15%. 

Salient Statistics—United States: 1995 1996 1997 1998 1999e

Production: Mine 317 326 362 366 340

Refinery: Primary (

2

) (

2

) 270 277 260

Secondary (new and old scrap) (

2

) (

2

) 100 163 150

Imports3126 159 209 278 210

Exports3347 471 477 522 250

Consumption, reported (

2

) (

2

) 137 219 240

Stocks, yearend, Treasury48,140 8,140 8,140 8,130 8,140

Price, dollars per ounce5386 389 332 295 285

Employment, mine and mill, numbere14,700 16,900 16,300 13,400 12,000

Net import reliance6 as a percent of

apparent consumption E E E E E

Recycling: 150 metric tons of new and old scrap, equal to 63% of reported consumption, was recycled in 1999. 

Import Sources (1995-98):

3

 Canada, 46%; Brazil, 12%; Australia, 8%; Mexico, 7%; and other, 27%.

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

Depletion Allowance: 15% (Domestic and 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.

Prepared by Earle B. Amey [(703) 648-4969, eamey@usgs.gov, fax: (703) 648-7757]
75

GOLD

Events, Trends, and Issues: Domestic gold mine production in 1999 was estimated at slightly below the record level

of 1998, 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 and California, where combined production

accounted for nearly 80% of the U.S. total. Between July 1998 and June 1999, 12 gold mines were closed, 2 new gold

mines were opened, and 1 gold mine was reopened in the United States. During this 12-month period, the average

output per mine had increased, 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 second consecutive year, with 1997 marking the peak of exploration spending for the 1990’s. The

expenditures of U.S. gold producers continued to fall in 1999 owing to the declining gold price.

During the first 9 months of the year, the Engelhard Corporation’s daily price of gold ranged from a low of about $254

per troy ounce, in July, to a high of over $308, in September. For most of 1999, this price range was below $275, the

low price reported for all of 1998. The traditional role of gold as a store of value was not able to lift the price of gold out

of its 20-year-low trading range. The market continued to be concerned about the future role of gold in the reserves of

the European Central Bank, which began operation on January 1, 1999. Late in September, however, a surprise

announcement by 15 European central banks to limit combined sales of gold from their official reserves to 400 metric

tons per year for 5 years quickly removed the above uncertainty that was depressing gold prices.

World Mine Production, Reserves, and Reserve Base:

Mine production Reserves7 Reserve base7

1998 1999e

United States 366 340 5,600 6,000

Australia 312 300 4,000 4,700

Brazil 55 50 800 1,200

Canada 166 155 1,500 3,500

Chinae178 150 NA NA

Russia 104 105 3,000 3,500

South Africa 464 450 19,000 40,000

Uzbekistan 80 80 5,300 6,300

Other countries 735 700 9,300 11,800

World total (may be rounded) 2,460 2,330 849,000 877,000

Of an estimated 128,000 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 108,000 tons, an estimated 34,000

tons is official stocks held by central banks and about 74,000 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 byproduct

resources. South Africa has about one-half of all world 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 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.

eEstimated. E Net exporter. NA Not available.

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

2Survey response not sufficient for publication. 

3Refined 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. 

e. Net bullion flow (in metric tons) to market from foreign stocks at the New York Federal Reserve Bank: 243.9 (1995), 373.0 (1996),142.8

(1997), 309.9 (1998), and 186.5 (1999, estimated).

4

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

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

6Defined as imports - exports + adjustments for Government and industry stock changes.

7See Appendix C for definitions.

8Excludes China and some other countries for which reliable data were not available.

U.S. Geological Survey, Mineral Commodity Summaries, February 2000