Global gold and silver mining production is set to reach record high levels in 2014, says a report.
International goldmine delivery continued to expand in 2013, reaching a new high of 96.7 Moz (over 4 per cent on year), says that gold and silver mining Focus Metals Report 2014, a precious metals consultancy.
Silver mine supply also increased in 2013, reaching a new high of 818.1 Moz (more than five cents per year).
Both of precious metals continued to benefit from the acceleration and implementation of projects aimed before.
For gold, the significant growth appeared in China (the world’s largest producer), whereas there was a significant increase in the Dominican Republic, Canada and Russia. Silver production increased due to a range of additions in various producing countries biggest silver of the world, including Peru, Mexico and China.
It is expected that the supply of mine gold rising again this year, however, starting in 2014, seems uncertain, the report says.
“Since 2015, the production of gold could entered a period of secular decline,” he said.
On the contrary, it is expected that the supply of silver to be either positive as more earnings are expected until 2016 at least, albeit at a lower rate than over recent years. Speaking of prices, the report notes that after a poor 2013, the beginning of this year suggests that attitudes towards gold and silver investors have been moving away from selling a single side of a more balanced perspective .
“We see 2014 as a year of consolidation broadly for gold and silver. We believe that a maximum of the year is behind us and, while on the downside, further price weakness of existing levels is possible” report added.
For The Gold thus, a short drop in about USD 1100 could not be discarded, said the report.
For silver also partly ruled by the movement of gold is expected that the average all year can fall just under USD 20.
Physical demand for gold is likely to moderate in many key consumption markets this year, it added. “We expect worldwide volumes are kept high. As such, the Gold Souk is projected to record a new structural deficit in 2014, providing certain support to prices for the rest of the year.”
By 2014, improvements from last year on the balance of supply and demand for silver would it be possible slightly as the world supply continues to rise while the overall demand slides back.
The major change, to on both sides of the market, are expected to physical investment. Output is forecast to physical investment falling by around 11 percent, which it is probably liable for the future development increasingly shaped range for the remainder of 2014, the report added.
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