Seven out of the world’s top 10 gold producing nations actually saw the gold price rise over the past year, and in one other (Australia) the price fall was virtually negligible – it’s an ill wind that blows nobody any good. Over 2015 the U.S. Dollar Index rose by just under 10% – exceeding that increase shortly before the year end before coming back a couple of points. In U.S. Dollar terms the gold price fell 11.4% over the year so one could say that the fall in the gold price roughly correlated to the rise in the dollar, although in truth the dollar ‘rise’ was more of a fall in other currencies given the U.S. economic recovery – on which the ‘rise’ will have been based – is far from as positive as the U.S. Fed, the U.S. Administration and much of the mainstream media would have us believe.
The table below sets out the change in the gold price in the domestic currencies of the world’s top 10 gold producing nations. Among these, only the U.S. and China saw anything that could be described as particularly painful for their domestic gold miners while Brazil, at the other end of the scale, actually saw the gold price rise over 30% in the Real – the currency in which the bulk of its miners’ costs are incurred. Thus the global gold mining industry outside the U.S. and China is probably in a far better shape than much of the media, and many analysts, are telling us.
This post was published at Sharps Pixley
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