Gold production is Nordgold’s main business.
Therefore, what is happening in the global gold market is of considerable importance to us.
The price of gold is determined by supply and demand, which we consider in detail below. However, the top line is that the gold price fell by more than 10% to US$1,061/oz as of the 2015 year-end, and averaged US$1,160/oz during the year – 4.5% below the average price for 2014. (Source: The London Bullion Market Association)
Nordgold does not have any gold hedging in place, and we therefore expect our realised gold price to remain close to the market price in 2016. Savings and speculation affect both the gold price and its consumption, unlike other metals, and add additional unpredictability to the dynamics of gold price forecasting.
Demand for gold comes from four sources
The supply of gold comprises mine production and gold recycling