A major nugging market has seen an unprecedented rise in demand, driven by demand from overseas.
Key points:Nugget gold prices have risen to $1,300 an ounce in Australia since MarchThe gold price is now more than five times higher than the $1.15 an ounce it was in NovemberThe market is now a multi-million dollar industryThe price of a nuggent of gold is up nearly five times since March when it was around $2,500.
The increase in demand for the metal, which has surged in recent months, has created a major demand for nuggets.
There are now more nuggets being mined per day in Australia than in the world, with an estimated 1,600 nuggets per day mined, according to the Australian Government.
Nugges are being traded on a daily basis, with the nugs being mined at the mining industry’s largest open-pit mine in the Goldfields in Western Australia.
Nuggets are then sold in wholesale markets in other countries.
“I think it’s a significant amount of demand from the international market and I think there’s a lot of interest,” said Gary Wilson, CEO of the Australian Minerals Council (AMC).
“I don’t know what the price is going to be, but it’s probably going to go higher.”
In the United States, the demand has been particularly strong with demand outstripping supply, according the U.S. Commodities Futures Trading Commission.
“There’s been a lot more demand overseas and that’s driven the price up,” said AMC vice president John Dorschner.
“It’s not just gold, but nuggets as well, as the price has risen significantly.”
The demand for precious metals has been strong over the last three months, with gold hitting an all-time high of $1 at one point in October, with demand from China and the United Kingdom increasing.
There has also been a surge in demand from countries in Europe, Asia and Africa.
In November, there were more than 10 million nuggets mined in the United Arab Emirates.
There were more nugs mined in Canada in October than the previous month, according Canadian Commodity Futures Authority data.
In July, more than 9.6 million nugs were mined in Australia, with more than half coming from the Gold Fields.
The nugges industry is in a period of boom, with new mines opening and the industry now generating a quarter of its revenue.
“They’ve seen the gold price go up and then the price of gold has gone down,” Mr Wilson said.
“That’s driven up demand from all over the world.”
We’ve seen demand outstrip supply and that has been the case with gold.
“The AMC is currently the largest mining company in the industry and has a turnover of more than $1 billion.
The company operates the biggest open- pit gold mining in the country, which produces more than 100 million nuggings a year.
Topics:mining-industry,gold,gold-mining-rural,business-economics-and-finance,mining-environmental-issues,mining,australia,united-statesFirst posted May 21, 2020 09:47:33Contact James Brown