by Steven St. Angelo, SRS Rocco:
In the first four months of the year, the U.S. exported more gold to Hong Kong than it produced from its domestic mining industry. Actually, gold shipments to Hong Kong were 29% higher than total mine supply from Jan-Apr. That’s a pretty big deal when we consider U.S. gold production ranks third in the world.
In order to cut costs, many gold producers resorted to “high-grading” their mines. This has a benefit of increased profit margins at the expense of lower production. If we look at the chart below, we can see that U.S. gold production declined 5% in the first four months of the year from 72.7 metric tons (mt) in 2013, to 69.1 mt this year.
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