Gold transactions in U.S. in decline

Gold resource transactions in the U.S. in 1991 dropped for the fourth year in a row, reports Colorado consulting firm Balfour Holdings.

Last year, 58 transactions were completed, the lowest level since 1985. The total number of ounces sold (11.6 million oz.) dropped 40% from 1990, while the total value transacted (US$544 million) dropped 78% during the same period. The median price paid (on a per-ounce basis) rose 16%; the mean price fell 13% from 1991.

Major mining companies were responsible for 86% of the buying and typically paid twice as much for assets (on an attributable ounce basis) than their junior company counterparts, Balfour says. In the purchase of reserves, proven and probable classifications commanded a 50% premium over those of lesser reserve certainty.

Meanwhile, the Gold Institute of Washington, D.C., forecasts primary gold production in market economies will average 1.3% per year during the next four years compared with an average 8% increase during the past 10 years. In 1991, South Africa retained its position as the world’s top gold producer. It was followed by the U.S., the Commonwealth of Independent States (the former Soviet Union), Australia and Canada.