Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Gold Report – First Quarter 2014

Gold Report – First Quarter 2014
Production set to reach record levels; crises affects prices

By Clare Goldsworthy, Head of Bullion, NZ Mint
April 2, 2014

Gold is slowly recovering from its lowest price in some years. By December last, gold had dropped below US$1,200 but three months in to the new year and it has recovered slightly to US$1,312.

In 2013 consumers generated exceptional levels of demand for gold, with prices somewhat dependent on supply and demand like any commodity.

However, precious metals are more complex and generally speaking no one event is likely to affect the price. Having said that, the Crimean crisis and the threat of war did contribute to buying pressure which has eased towards the end of March with prices coming back significantly.

Conversely, gold demand has been relatively bullish during the first three months of 2014 with a few flat patches thrown in. Investors have been a mix of local and international with a reasonably equal split.

With world unrest seemingly on the increase across several different levels, investors from all walks of life appear to be showing growing interest in precious metals – the argument being that gold and silver help preserve wealth in turbulent times.

On the production side we believe that gold mine output will set a record this year and the slide in prices is unlikely to put the hand brake on the tonnage mined until 2015. Weak demand however is likely to offset any prospect of a cut in supply.

In reacting to lower prices, some producers have suspended marginal mines while others are actually increasing production to maintain revenue levels Reuters reports. There are suggestions higher grade ore is being targeted – called high-grading - by some to keep marginal mines operational, perhaps at the expense of future production.

Several large projects begun when gold was rallying are now coming to fruition and the world’s top three miners all report higher production in the most recent quarter. Mining costs appear to be stabilising too, after soaring during the boom years and already the average cost of producing an ounce of gold is showing signs of back-tracking.

Here’s gold’s track January to March 2014.

About The New Zealand Mint
The New Zealand Mint has been minting legal tender commemorative coins, gold bullion and medallions for more than four decades. As New Zealand's only precious metal mint and one of the first world mints to adopt the .9999 standard for gold coin purity, New Zealand Mint prides itself on high quality design and production work. New Zealand Mint has the most comprehensive range of bullion products in New Zealand including being official distributor for Pamp Suisse and Perth Mint. In 2009, New Zealand Mint opened the Bullion Exchange, the first of its kind in New Zealand which offers a comprehensive service for buying and selling gold and silver bullion as well as on-site insured storage. Leading the way with innovative coloured, silver and gold commemorative coins, New Zealand Mint is known globally for quality and design excellence. New Zealand Mint also produces several ranges of jewellery that cater to many tastes and styles, including the Boh Runga for New Zealand Mint collections.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news