ABC Refinery is the well-respected, refining division of Pallion, which is Australasia’s largest independent precious metal services group of companies. ABC Refinery is synonymous with the Australian gold industry and is entrusted to partner with their customers and maximize cash flow, financial return and quickness of output. The strength of the gold industry in Australia greatly impacts the success of ABC Refinery, so today the company will take a quick look at the gold outlook in Australia.
Australia is the world’s second largest producer of gold. 2019 is set to break records yet again as Australia’s yearly output of gold is estimated to reach more than 339 metric tons. This, according to a recent Australian government report. For more than two decades, the record sat at 314.5 tons. 2018 saw 317 tons so the record will only last a year.
While most projections see the output of gold dipping slightly in 2020 and 2021, current production makes gold Australia’s fourth-largest commodity export. Gold in Australia is set to add more than $22 billion to the country’s economy this year. ABC Refinery has seen firsthand that mining is increasing and the increase in production has brought about higher gold prices. Current projections state that gold prices are forecasted to rise to an average of $1,440 U.S. dollars an ounce by the year 2021.
World consumption of gold is forecasted to advance through the year 2021. Banks continue to be the lead purchasers of gold. Central banks gold buying habits are forecasted to not only increase 4.3 percent a year over the next two years, this total is projected to grow to more than 700 tons of gold by 2020. In a world of economic uncertainty, gold is a trusted commodity. It’s the main reason central banks have made gold such a valuable commodity. Unlike bonds or stocks, Australian gold is a tangible commodity that will not lose its inherent value should the market crash in the future.
ABC Refinery point out that US-China tensions along with the uncertainty of Brexit have driven more investors towards the guarantee of gold. ABC Refinery explains that while demand has grown, gold still requires a lot of time and expertise to find. The company takes the challenge seriously and will continue to work with every one of their partners to discover as much gold as possible.