Gold Supply Bounced Back in First Half 2021

SEATTLE (Scrap Monster): The global gold supply bounced back in the initial six months of 2021, said the latest Gold Demand Trends report published by the World Gold Council (WGC).

The total supply during H1 this year was 2,308 tonnes, higher by 4% over the previous year, primarily due to less mining disruptions on account of Covid-19 pandemic. Meantime, the recycled gold supply witnessed year-on-year decline by 5% to 546 tonnes, despite strong gold prices, strongly affected by lockdowns during the previous year. However, the supply saw 3% quarter-on-quarter surge, WGC noted.

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The mine production during the six-month period surged higher by 9% to 1,783 tonnes, thereby hitting the largest level on record. The increased output from Grasberg, Indonesia and Oyu Tolgoi, Mongolia contributed significantly to the growth. The other positive factors included higher grades from Mexican mines as well as operational ramp-ups in North America.

Some countries recorded notable decline in mine production during the quarter. The mine production in Australia and China fell by 3% and 5% respectively. Meantime, Kyrgyzstan and Egypt saw their mine production tumble by 21% and 25% respectively during the second quarter of 2021.