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Executive Summary

This is a time of change for the entire gold industry. The mining sector is facing a barrage of converging challenges; increasing costs, ever higher expectations from a wide range of stakeholders and a gold price which could call in to question the viability of some projects and lead to a contraction in supply.

​​Demand however is increasing, fuelled by; expanding middle classes in Asia, diversification of reserve assets by central banks and a growing desire for physical gold amongst manyWestern savers.

​​In the midst of all this, and at a time when the ‘extractive’ industries are being widely scrutinised for their global impact, it is important to be reminded of how gold contributes so broadly to the global economy, ranging from foreign exchange earnings for gold-exporting countries to employment opportunities and tax revenues

​​This study demonstrates this clearly; of particular note is the fact that the economic value generated has a direct and sustained impact on the local economies where gold production or consumption takes place.

​​​​​​​​​To r​​​ead the entire article:

The direct economic impact of gold

The economic impact of gold
Oct   18   ( From World Gold Council , PWC  )​
Global mine production was 2,861 tonnes in 2012. Mines in the top 15 gold producing countries extracted 2,177 tonnes of gold in 2012, 76% of the world total. The six largest producers, China, Australia, the United States, Russia, Peru and South Africa, extracted more than half of the gold mined globally.

The gold mines in the world’s top 15 producing countries are estimated to have generated US$78.4 billion of direct GVA in 2012. This is equal to the entire national economic output of Ecuador or Azerbaijan or 30% of the
estimated GDP of Shanghai. The direct GVA for each country is shown in the chart below.

​​This impact excludes the indirect or induced effects of gold mining which arise from spending in the supply chain and by employees on goods and services. If this impact was included, the economic contribution of gold mining would be significantly bigger.

 The economic impact of gold    $MACRO, $STUDY, $GLD, $GC_F , $GDXJ
China is estimated to derive the largest economic contribution directly from gold mining at US$12.6 billion in 2012, although this is only a small proportion of the total output of the world’s second largest economy (0.2%).

​​The direct GVA from gold mining is also estimated to be over US$8.0 billion in the US, Australia, Russia and Peru.

The significance of gold mining to national economies varies considerably. It is estimated to be greatest in Papua New Guinea (15% of GDP), followed by Ghana (8% of GDP) and Tanzania (6% of GDP).

​​For these countries, gold mining is one of the most significant sources of wealth creation in the economy.

The average amount of economic value added per ounce of gold is US$1,139 and ranges from US$946 in China to US$1,352 in Peru in 2012. The differences between countries reflect variations in labour costs and productivity.
Gold gross value added (GVA) in 2012