Anything these countries touch turns to gold, which is why they are the 15 largest gold producing countries in the world. Now, if you’re like me, you’re probably wondering why gold is given such importance. After all, it’s not like gold prevents cancer, or gives you superpowers or increases your intelligence.
While gold definitely has properties which make it a valuable commodity, such as being tensile and malleable, but it’s actually its look, aesthetic and scarcity which has made it so valuable throughout centuries. After all, nothing brings more attention than something which only you possess and no one else does. This is why gold has been a symbol of power for centuries as well.
Any country which has large reserves of gold has some power, as it can derive wealth from gold production. This is one of the reasons why you’ll see some of the most powerful countries in the world in this list. Another reason why gold is seen to determine the wealth of a country is because of its stability. Whenever there is uncertainty in the market, people get rid of their stockholdings and invest in gold because of its stability. Considering the fact that we’re in the midst of the biggest pandemic in a century, and the economy is crashing spectacularly on a global level, investments in gold have increased significantly as well.
The United States is running a nearly $4 trillion budget deficit in 2020 and can’t print enough dollars which is why they are creating dollars electronically. We were running a deficit of $1 trillion even before the pandemic so unless we dramatically jack up both personal and corporate tax rates after the pandemic, there is no end in sight for budget deficits. In the long-run this means only one thing: inflation. This is why there’s speculation that gold could hit its highest ever price achieved in September 2011. Gold is an ok way to protect your portfolio from the impending dollar inflation, but it isn’t the best way. Subscribe to our monthly newsletter to find out the best way to grow your nest egg faster than the increase in gold prices. Our subscribers doubled their portfolios in 3 years and our stock picks generated double digit positive returns even in 2020 (through early June). You can download a free issue by subscribing below:
In the US, gold production has actually decreased year on year from 2018 to 2019 by 11%. The value of gold production in 2019 is approximately $9 billion. Out of the 50 states in the US, only 12 states have been involved in gold production, with Alaska producing most of the gold. An interesting point is that only a few dozen countries have been able to dominate the fabrication of gold into commercial products. Due to its lower production, the US has had to import gold from other countries, primarily from its neighbors Mexico and Canada.
Since the gold industry is a multibillion dollar industry, there are some major companies in the world who are dependent on the industry. If you want to learn about major global gold companies, you should consider taking a look at the 10 biggest gold mining companies in the world. While many of the companies in the list were not from the US, the biggest gold mining company, in Newmont Goldcorp. Newmont Goldcorp had revenue of over $9.7 billion in 2019, and currently employs over 24,000 people worldwide. It is also the only gold company in the S&P 500.
15. Papua New Guinea
Gold production in 2018 (in metric tons): 67
Gold production in 2019 (in metric tons): 70