The Future Looks Bright for Gold

According to the report’s latest data, the world gold supply is forecast to continue to grow, as producers ramp-up their production to maximize the benefits of high gold prices.

Consequently, the report indicates Australian gold prices are forecast to rise to another record annual average high of AUD $2,042 an ounce in 2020, with exports forecast to increase by 33% hitting a record high of $25 billion in 2019-20.

The future of gold mining:

Certified Minings are working to transform gold production worldwide through new processing technology that eliminates cyanide as a means of extracting the precious yellow metal.

These estimations are a result of looking back at the year that was, when Australian gold prices hit a new record high of AUD $2,289 an ounce on 3 September 2019.

The REQ states global economic uncertainty, trade tensions and a desire to diversify out of the US dollar, all appear to have been the catalyst for central banks’ growing appetite towards gold. The report shows in the period between 2008–09 and 2018–19, demand for Australian gold was largely dominated by China, Hong Kong, the United Kingdom, and India.

According to the World Gold Council, nine central banks: Poland, Russia, China, Kazakhstan, India, Ecuador, Colombia, Turkey, and the Kyrgyz Republic; all increased their gold reserves by at least a tonne in the first half of 2019, and the central banks are likely to continue to support gold prices over the next few years, with their purchases expected to stay above 700 tonnes in 2020, as gold faces higher demand as a safe-haven asset. 

World gold consumption had increased by 7.9% in the first half of 2019 to 2,182 tonnes, propelled largely by the central bank buying, inflows into gold-backed exchange-traded funds (ETFs), and significant growth in the desire for gold jewelry.

An Insight Into The Gold Mining Industry

The Australian mining industry is not just important to the local economy. Mining has been a crucial operation in Australia since the gold rush of the middle 1800s after gold deposits were found across the continent.

The discovery of gold also generated interest in other minerals and gems that could possibly be in the region and the result was mining becoming a primary component of the Australian gross domestic product.

The Future of Gold Mining In Australia 

Australia is the world's leading gold producer. Gold mining was the initial boom for the island, resulting in the establishment of the city of Melbourne. Australia is also the international leader in opal production, along with a considerable amount of diamond mining.

Australia’s notable gold riches first garnered attention in the early 1800s when the country was still under the control of the British Empire. Gold was discovered first in New South Wales and then in Victoria. When news of these lucrative finds reached the motherland, people rushed to emigrate to this new, exotic, golden frontier.

Industrial Energy Resources

Australia is also a significant producer of other valuable raw materials. Iron ore is a core product for the Australian mining industry. They are the fourth largest coal producer internationally and the world's leading coal exporter. Many nations that mine coal do not import much of the production, but Australia is situated in a manner and deposits are so vast that they lead in shipping internationally.

They are a primary producer in the hemisphere, along with China. Australia is also second only to China in the production of zinc, producing nearly 15% of world supplies. Australia is home to some of the largest uranium deposits in the world, but uranium is a sensitive product because of its use as a weapons-grade military raw material, even though it is also used as a primary energy resource for general use.

Liquid Resources

Australia does produce a considerable amount of petroleum, but not nearly as significant as the various mining interests. The contribution to the national growth domestic product is nominal. The product of most interest currently is liquid natural gas, as natural gas appears to be a highly viable alternative fuel in the near future.