World gold production will continue growing in the coming years. It’s due to the increase in the price of gold and the incorporation of operations between large mining companies. Russia will be the country that takes advantage of its resources the best. In fact, some expect it to replace China as the world’s largest producer of gold by 2029.
World gold production, far from beginning to decrease, will increase in the coming years. This is in thanks to the high price of gold, which makes it possible to exploit deposits that imply higher costs more effectively. It is also the result of mergers between large mining operations.
Fitch Solutions estimates that global gold production will increase from 106 million ounces (3,297 tons) to 133 million (4,136 tons) in 2029. This represents an annual growth of 2.5%.
The main protagonist of this growth in production is Russia. The country has led gold purchases by central banks in the last decade so far. Therefore, over the next ten years, it could also become the country that increases gold production the most.
Thus, according to Fitch estimates, Russia will go from 11.3 million ounces (351.5 Mt) in 2020 to 15.5 million (482 Mt) in 2029, and it will make the country the world’s largest producer.
This increase represents an annual growth of 3.7% during the period 2020-2029. This will allow Russia to capture 11.6% of global production at the end of the decade. This is in comparison to 10.6% in 2020.
Russia will have to do a lot with the current and future sanctions imposed by the United States. Due to the progressive deterioration of bilateral relations, the risk is increasing that Russians will be prevented from trading with dollar-denominated assets. This is what has pushed the Central Bank of the Russian Federation to increase its gold reserves.