Gold In Africa

Gold In Africa

Gold In Africa – All you need to know about Gold business in Africa

Gold is one of the world’s rarest minerals, occupying up to about 0.003 parts per million of the earth’s crust. But what quantity of gold is produced in the world every year and where is it produced the most?

In 2019, the gold mine production in the world was 3463.7 tones and this reduced by 1% from 2018. This was the first year a sharp gold output decline was recorded since 2008. However, gold production has been relatively steady since 2010. This is can be attributed to the fact that currently all the easy gold has been discovered and explorers have to dig deeper to get economically viable gold deposits.

Previously, South Africa featured as the top gold producing country producing up to about 1000 tonnes in 1970. Unfortunately, its gold output has decreased steadily from then while many countries have emerged in the last few years as the growing gold producers in the world.

When it comes to mining of gold in Africa, the western countries are considerably a hotspot in this continent. Mining of gold in Africa in the ancient days was done not just by the ancient Egyptians but also by the black Africans which presently is popular as Ghana. This was previously called Gold Coast and its neighboring countries though it came at a later date.

Where is the most gold in Africa?

Africa to many is known for its diverse natural resources. But did you know that gold is one of the Africa’s main exported commodities? Most gold in Africa comes from West African countries. The largest gold in Africa is produced from Ghana which surpassed South Africa in 2019. Ghana is also popular for her numerous reserves of minerals. Other than Ghana, most active gold mining African states include Mali, Burkina Faso, Congo and Uganda. These are the leading gold produces and for anyone who is interested in investing in gold in Africa, they are hotspots to keep an eye on.

Brief history of gold in Africa

Gold in Africa: From the 5th-8th century, gold was the major exported commodity given the rising demand of coinage. Its exportation to the outside world increased from the 7th-11th century when the Mediterranean states began to demand gold in large quantities.

With the inspiration from the initial commercial transactions, West African states especially Ghana and Mali became the beneficiaries of the situation and extracted a potential of gold as a raw metal for minting. This is why Ghana was best described as ‘The Land of Gold’. Gold in Africa originally was used in Western gold coins.

From 1500, gold in Africa could power the world system of coinage. It remains one treasured mineral that has shaped the world and determinant for Africa’s interaction with the rest of the globe. For over 1500 years, gold remains the major commodity that determines not just Africa’s economy and history but also the continent’s connection with the world. Presently, the gold fields in Africa are worth billions with most active gold producers being Ghana, South Africa, Mali, Burkina Faso. Other potential hotspots include Benin, Morocco, Gambia, Uganda, D.R.C.

History also has it that gold in Africa was initially used industrially in Egypt about 3100 BCE. It was extracted from the granite filled mountains in Eastern Egypt and also in the anciently famous Nubia.

In South Africa, the first discovery of gold ever was recorded in June 1884-1886 by Jan Gerrit Bantjes who happens to be the first to discover a Witwatersrand gold reef. This was after exploring the area since the early 1880s and also co-operating the Kromdraai Gold Mine in 1883.

How to invest in gold stocks in Africa

With an ever-rising gold production worldwide, it is high time one invested in a gold stock. A gold stock is one of the most famous was to invest in the output from African continent. To invest in gold in Africa, investors have 2 major kinds of gold stocks; the large cap companies and junior miners. The large cap gold companies are popular for the lower level of risk unlike junior mining stocks which are a little tricky and usually very challenging to visitors to pick out winners within the stock market.

Unlike large cap gold companies, if a junior gold miner makes a big discovery, very few of them may have mining operations needed to develop a property and, in most cases, most of them target to hit on a deposit which is attractive in order for them to also attract the attention of the main producer who then buys from them at a profit.  Investing in gold stock however requires you to have in-depth understanding that they have a direct relation to gold production.

Reach out Trade Panel International for gold business in Africa.