Gold and Silver Ore Mining in the US Industry Market Research Report Now Available from IBISWorld

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Because of the close ties to the Gold and Silver Ore Mining industry, lower gold prices will negatively affect revenue. Production will remain weak due to depleting resources nationwide. Furthermore, volatile prices and poor production levels will cut into profit. However, investment in gold will continue to fuel growth, with revenue set to increase only marginally despite declines in prices. For these reasons, industry research firm IBISWorld has added a report on the Gold and Silver Ore Mining industry to its growing industry report collection.

IBISWorld Market Research

IBISWorld Market Research

Gold prices will fall as the economy recovers, causing revenue to grow slightly through 2017

In 2011, US production of mined gold and silver ore reached its lowest point in almost 20 years, but the US Gold and Silver Ore Mining industry achieved record-high revenue. This apparent contradiction reflects the power precious metal prices, which are traded on world financial markets, have on industry performance. Over the five years to 2012, gold prices and industry revenue are projected to climb at annualized rates of 19.5% and 17.4%, respectively. According to IBISWorld industry analyst Brian Bueno, "The increases have been driven by growing global demand from investors seeking a safe investment after the recent economic downturn." In 2012, revenue is expected to jump an additional 11.8% to $14.8 billion as prices climb due to recessionary conditions in Europe and continued disappointment in the US economic recovery.

On the other hand, demand from jewelry manufacturing, the Gold and Silver Ore Mining industry's primary domestic market segment, has decreased in recent years because of price increases and declining consumer demand. In fact, jewelry's domestic share of industry revenue is currently down 10 percentage points from its level in 2009. Investment demand has grown tremendously, however, especially in the global market where investment demand in gold is almost 40.0%. Says Bueno, “As demand grows domestically and internationally, producers are attempting to boost production to take advantage of high prices."

The six largest gold producing mine sites – Goldstrike, Eastern Nevada Operations, Bingham Canyon, Cortez, Twin Creeks and the Smoky Valley Common Operatio – are operated by the four largest players: Barrick Gold Corporation, Newmont Mining Corporation, Kennecott Utah Copper (Rio Tinto Group) and Kinross Gold Corporation. Concentration has increased in recent years, due to merger activity and increased production at some of the industry's largest mines. The medium-high level of industry concentration reflects the relatively small amount of mineral resource locations, where the largest and highest-volume producing mines are controlled by a few large companies, and multiple firms often operate at the same mine establishments. Additionally, producers have an incentive to merge due to the cost benefits of having larger operations. Large producers also have greater capital availability necessary to invest in mine exploration and development. All these factors give major players an advantage, making it difficult for smaller firms to compete and lead some to consolidation. For more information visit IBISWorld’s Gold and Silver Ore Mining in the US industry page.

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IBISWorld industry Report Key Topics

Firms in this industry mine gold and silver bearing ores. Mining includes the development of mine sites and the on-site processing of ore into a concentrate or bullion. Firms typically retain ownership of the semi-processed gold or silver product and pay for further refining on a toll-charge basis.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld
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