Australia ranks top with highest gold reserves in 2020, followed by Russia and the US a distant third

Australia ranks as the top country with the highest gold reserves at an estimated 10,000 tonnes, followed by Russia with 7,500 tonnes and the US with a distant 3,000 tonnes in gold reserves, according to data by the US Geological Survey. Finbold said the amount of the remaining gold reserves varied as it might reduce due to increased mining or rise as more mining ores were discovered.  China top producer in 2020 According to data analysed by Finbold, China emerged as the top producer of gold in 2020, accounting for 380 tonnes or 11.9% of the share of global gold production. Finbold attributed this to China’s control of the coronavirus pandemic and the return to normal economic activities in the country. Australia second top gold producer Australia emerged as the second top gold producer, with 320 tonnes produced or 10% of the global share, with Russia coming in third with 9.4% or 300 tonnes. China, Australia and Russia cumulatively represent 31% of all the gold mine produced in 2020. In 2020, a total of 3,200 tonnes of gold were produced worldwide. Pandemic hits 2020 mining operations The global gold mine production faced unprecedented challenges due to the coronavirus pandemic with most mining operations suspended following wide-scale lockdowns. However, once the lockdown measures eased towards the third quarter, production resumed in most countries, Finbold noted. China topped the list in production mainly due to its handling of the pandemic, having successfully managed to control the health crisis and giving the green light for the resumption of economic activities, including mining. Production was also motived by China’s high demand for gold, especially gold jewellery and ornaments. Finbold also highlighted that the Chinese gold mining industry received increased foreign and domestic investment, with the country remaining in pole position despite the heavy and tighter national environmental policies. Political factors were also a driver. China has been able to set aside the trade tension with the US as most of the precious metal is consumed locally while Russia’s share stems from concerns of sanctions from the US which may result in state banks being frozen out of dealing in US dollar-denominated assets Gold price at all-time high Despite the pandemic, gold hit a new all-time high, trading above US$2,000 in August 2020, which in turn fuelled exploration and mining activity. The interest in gold was also boosted by investors seeking an investment alternative following the 2020 first-quarter stock market crash.