Outlook for 2013 Gold Prices

If you own scrap gold this appears to be a good time to sell. Increases in gold production might influence gold prices to drop.

Barclays, a major British financial services company, estimates that global gold production should increase slightly to 2,672 metric tons in 2013 from 2,652 metric tons in 2012, according to a November 13th Bloomberg article entitled “Gold Industry Facing Mine Discovery Challenge.” These estimates are similar to the 2011 global gold production estimate of the United States Geological Survey (USGS) of 2,700 metric tons. 2,672 metric tons is approximately 86 million troy ounces.

Gold production tends to fluctuate from year to year, with factors such as the gold price, new discoveries, mine quality, investment capital, and energy and labor costs influencing production. Despite this fluctuation, production tends to be relatively stable, due to the rarity of the metal and the cost of extracting it from the earth. With the price of gold having increased from under $300 per troy ounce in 2001 to about $1650 per troy ounce today, global gold production is likely to stabilize or increase in the next few years due to greater profitability in mining.

According to the USGS, in 2011 China led the world in gold production at 355 metric tons, followed by Australia at 270 metric tons, the United States at 237 metric tons and Russia at 200 metric tons.

Because of increased production, gold prices could feel the pressure and head downward. Now is a good time to sell and A1 Gold Buyers is the right place to sell to. A1 assures the highest prices and finest service in the metropolitan area. Come see us for your Gold, Silver, Diamond and Coin sales.

Sources:
http://www.bloomberg.com/news/2012-11-13/gold-industry-facing-mine-discovery-challenge-barrick-ceo-says.html
http://minerals.usgs.gov/minerals/pubs/commodity/gold/mcs-2012-gold.pdf