The gold mining industry struggles to sustain production growth due to declining new deposits, reports the World Gold Council (WGC). Despite a 4% increase in first-quarter production in 2024, overall growth has plateaued since 2016. In 2023, mine production rose by only 0.5%, following 1.35% in 2022 and 2.7% in 2021, with a decline of 1% in 2020. WGC Chief Market Strategist John Reade notes the industry has been struggling after a decade of rapid growth from 2008. Discovering new gold deposits is increasingly difficult as many regions have been explored. Large-scale mining requires substantial investment and takes 10-20 years to develop. Additionally, securing government permits and necessary infrastructure, especially in remote areas, adds to the challenges. Gold prices have stabilized at $2,294.3 per ounce after a recent rally. Only about 10% of global discoveries contain enough gold to warrant mining, highlighting the industry’s ongoing difficulties.
Gold Production Struggles Despite 2024 Q1 Surge
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