Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Higher gold price will add 10m annual ounces by 2020

Higher gold price will add 10m annual ounces by 2020

Frik Els

Gold was treading water on Friday exchanging hands for $1,330 in afternoon trade in New York. Gold is coming off two-year highs hit early this month and year to date the metal is still up more than 25% or $270 an ounce.

Gold's best first half since 1980's banner year when the inflation-adjust gold price topped $2,000 an ounce has sparked fresh investment in the sector with a new report forecasting steady production growth through 2020.

BMI Research, a division of Fitch, predicts in a new report that gold miners will add 10 million ounces or more than 280 tonnes to global production with average annual growth of 2.7% for a total of 110 million ounces or 3,118 tonnes yearly output by 2020. This represents a slight deceleration in growth rate compared the previous five-year average of 3.2%.

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