Would you like to know which are the top gold producing countries in the world? The lucrative mining industry has blessed several nations with great wealth, especially those who possess large reserves of the golden precious metal. South Africa is a great example of a country which has derived great benefits from its extensive gold-mining activity.
Interestingly enough, large and powerful nations such as the USA, China, and Russia, all produce vast amounts of gold every year and are present in our list of the top gold producing countries in the world. The benefits of mining gold however, are vastly larger in countries with lower production costs, such as Peru or Ghana. Nevertheless, as economic cycles set off turbulence on the financial markets, investors look to gold as a safe haven.
Thus, gold prices tend to rise during times of economic strife, allowing even firms with large production costs to make a healthy profit. We saw that play out during the most recent economic crisis, when gold soared to record highs up until early 2013. At that point, the U.S economy began to show signs of recovery, and its currency (often considered the other safe haven aside from gold) strengthened along with that, sending the price of gold tumbling as a result.
If you happen to have seen our previous post on the 20 wealthiest countries in the world, you might come across similarities. After all, the price of gold has maintained a steady price and grown in the long term by a healthy margin, making profits in the industry immense. Might the top gold producing countries in the world also be some of the richest?
In order to find out, we have gathered information from a report presented by the U.S. Geological Survey, which allowed us to compile a ranking of the top gold mining nations on the planet. So let’s take a closer look at the top gold producing countries in the world.
Ghana is not only a major gold mining nation, but is also on its way to becoming the number one cocoa producer in the world by next year. Natural gas and oil complement the diverse resource base of this African nation’s economy.
Despite being located in a rather remote and landlocked part of the Asian continent, Uzbekistan has been blessed with large reserves of minerals, including gold. Mining has been very profitable for the Uzbekistani, and added to the wealth already generated by the growing energy sector.
Although gold is not the first thing that comes to mind when you think of Mexico, it surely is quite present in its history. Ancient civilizations utilized gold to decorate their temples, whereas today, huge mines extract the ore in exchange for hefty profits.
This country seems to have everything, except for nice weather (at least in the more northern regions). Ever since the Klondike Gold Rush of 1898 in the Northwest Territories, gold production has been on a continuous path of growth, which has turned it into one of the world’s main exporters of gold.
6. South Africa
Until 2006, South Africa had enjoyed the position of the world’s leading gold producer for a very long time. Nevertheless, as exploitation expanded, deposits grew thin, and today South Africa’s gold miners are struggling not only with rising labor costs, but also increased production costs.
Anyone who knows a little about history, is certainly aware that Peru served as the main point of gold extraction for the Spanish Empire throughout the 16th century and well into the 19th. Today, gold production continues to grow in this country with a seemingly endless reserve of wealth.
Russia has always enjoyed one huge advantage over all other nations: it is huge. This might sound silly, yet having a lot of land means the odds of finding more gold are in your favor. Gold production in Russia is certainly growing, and not at a slow pace.
3. United States
Russia’s cold war nemesis is one step ahead in terms of gold production, although only by seven metric tons. The various mountain ranges in the US offer a great place to mine for gold, an activity several firms have perfected quite well.
The second largest gold producer in the world is Australia, which has seen output rise considerably over the past few years, surpassing the US. This is the first time the Australians were able to achieve this level of production and finally shine as runner-up.
Gold production in China has been rising at a pace so accelerated, that it reminds us of just about all the industries linked to the People’s Republic. A booming economy, a vast industry, and now a gold-mining industry which put out almost twice as much of the precious metal as Russia. China has left its competitors far, far behind.