Gold & Silver Ore Mining in the US
Like all commodity miners, revenue is largely a function of production volume and commodity prices. For the Gold and Silver Ore Mining industry, output volumes and sales prices for both gold and silver have remained volatile over the past five years, leading to significant industry contraction. Meanwhile, demand from manufacturers of electrical equipment, electronic products and jewelry, which comprise the industry's primary markets, has stagnated or even declined over the past five years as a result of high import penetration and input costs. It is also important to note that the industry has experienced great volatility during the current period on account of gold prices reaching all-time highs during the prior five-year period. For example, a drop in mined silver ore caused domestic production of industry metals to decline beginning in 2013; therefore, the Gold and Silver Ore Mining industry's revenue fell sharply in 2013. This trend reflects the influence on industry performance exerted by prices for gold and silver, which are traded on world financial markets. Over the five years to 2023, gold prices are expected to continue to soften as the global economy continues its steady growth and investors keep their holdings as higher-return assets.
Operators in this industry mine gold and silver-bearing ores. Mining activities include the development of mine sites and the on-site processing of ore into a concentrate or bullion. Companies typically retain ownership of the semi-processed gold or silver products and pay for further refining on a toll-charge basis. The refining process is included as part of the Copper, Zinc and Lead Refining industry (IBISWorld report 33141).
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.