Precious Metals:Data & Statistics
Gold Exploration Spending Falls
Faced with rising costs and lower market prices, gold producers based
in the United States reduced their exploration budgets 28% to $417 million
last year, according to The Gold Institute, an international association
of suppliers of gold and gold products. They cut expenses and started to
concentrate on investments at their lowest-cost properties, says the institute.
The biggest reductions by dollar value were in Latin
America, down $93 million, and the United States, down $57 million (see
table at right for details). The figures are based on preliminary year-end
figures as reported in the institute's "Annual Exploration Survey of
For retailers, tighter supplies resulting from less exploration could
shore up gold prices in the short-term. But if the mining companies continue
to expand their exploration efforts in lower-cost countries and get into
a competitive race with each other, the resulting overabundance of gold
would have a downward pressure on prices.
Copyright © 1999 by Bond Communications.