GOLD

Production and uses of gold

Production

Since the earliest times gold has been hoarded by kings, states, popes and individuals, the prime example being Croesus of the Mermnadae, last King of Lydia (560-546 BC.). It is said that most of his fortune in gold came from the placers of the Pactolus, but it seems more likely that his wealth had a more widespread origin since the Lydians were renowned for their trading pursuits. How much gold was hoarded in ancient times is unknown, but the practice seems to have increased at the beginning of our era, so much so that during most of the Dark and Middle Ages both of the precious metals were scarce. Some of the scarcity was undoubtedly due to the exhaustion of most of the placers in Europe and the Middle East and also to a general decline in mining, the economic limits, in terms of depth, of profitable ore having been reached in many districts mainly because of engineering problems (ventilation and flooding by ground water). It is estimated that the total annual production of gold during the Dark and Middle Ages probably averaged only about 100 000 oz.

Geographical exploration brought an abrupt change in this situation, the manifestations of which affect us to this day. With the rediscovery of America by the Spaniards in 1492 came the discovery of great stores of both gold and silver first in the islands of the West Indies, then in Mexico and finally in Central and South America. At first, great quantities of gold were looted from the natives, but as this source declined active placering and mining by slave labour provided a large and continuous influx of gold and silver to Spain.

Despite an attempt by the Spanish government to keep the precious metals to itself, they soon filtered over the whole of Europe, increasing the supply of money and inflating prices. It is estimated that from 1492 to 1600 more than 10 million oz of gold came from the Spanish Americas, which was about 40 per cent of the world production at that time. Marked increases in gold production from South America, particularly from the placers of Colombia, were registered during the period 1600-1800; for example some 48 million oz were won during the 18th century, accounting for about 80 per cent of the world production. Two further increases in the world gold production followed during the periods 1820-1880 and 1890- 1920. The first marked the discoveries of the great placer and lode mining areas of Siberia, California, Australia and New Zealand; the second followed the discoveries of placers and bedrock deposits in Alaska, Yukon, Central Canada and on the Witwatersrand of South Africa. Since 1920 there has been only one period, 1933-1939, when the production of gold increased significantly. During and since World War II a general decline in the production of gold in nearly all countries except South Africa and the Soviet Union has taken place. In South Africa the average annual production for the last 5 years (1970-75) has been about 27.5 million oz; during the same time in the Soviet Union the annual production for the last 5 years has probably averaged 10 million oz, although this figure is only a rough estimate, the true value being a closed guarded secret. It is estimated that the total amount of gold won by man from the earth to 1975 is about 3 billion (3 X 10⁹) oz. Of this amount some 2 per cent was produced prior to 1492; 8 per cent during the period 1492-1800; 25 per cent during the interval 1801-1900; and 65 per cent from 1901-1975, all figures being rough estimates.

Approximately 88 per cent of the annual world production of gold is obtained from primary deposits and placers (fossil and modern) mined essentially for gold, The remaining 12 per cent comes as a by-product of base metal and silver mining. The average annual world production during the period 1971-1975 inclusive was about 49 million oz. The principal producing countries are shown in Table II.

Gold in: Primitive Classic Medieval Renaissance post-Renaissance period.

Gold: Deposits Transport 1 2 3 4 5 6 Production 1 2 3 4 5

Rafal Swiecki, geological engineer email contact
February, 2006

This document is in the public domain.