Global Gold Supply Posted 4% Decline

SEATTLE (Scrap Monster): The Gold Demand Trends Q1 2021 Report published by the World Gold Council (WGC) signals dip in total global gold supply during the quarter. This is despite jump in mine production.

The gold supply totalled 1,096.2t in Q1 20201, which is down by 4% compared with the supply which had totalled 1,146.5t in the corresponding quarter a year before. The gold mine production recorded 4% surge from 816.7t to 851.0t over the previous year. On the other hand, the recycled gold supply fell 8% from 295t to 270.2t year-on-year, mainly on account of weaker gold prices and diminished stocks. WGC noted that gold mine production looks set to hit new all-time high during the entire year 2021, whereas recycling is expected to remain subdued.

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The notable surge in mine production was mainly driven by fewer COVID-19 related interruptions compared to the same period last year. The other major contributing factors include boosted output from North American mines and increased mining rates at Grasberg, Indonesia mine.

The mines in Mongolia and Indonesia witnessed substantial production increases during the quarter, whereas countries such as Papua New Guinea and Argentina posted decline in gold output.