Producers urged to take advantage of gold price

The Guyana Gold Board on Tuesday urged gold producers and other holders of gold to sell and declare the gold in their possession as prices recently moved upwards.

In a statement, the entity said that it “wishes to bring to the attention of gold producers and other holders of gold specifically, raw or unrefined gold, amalgam, slimes and scrapings containing gold and/or smelted gold that the gold market is currently at an all-time high since the beginning of February 2015.”

According to the Gold Board, while 2015 began with the price of gold quoted by the London Fix at US$1,184.25, the market prices initially fluctuated within US$1,140 to US$1,190 band before showing increased volatility and pushing past that band upwards.

Gold prices hit a two-week high on Monday, the statement noted, while urging producers and other holders of gold to sell and declare the gold in their possession. To encourage increased declaration, government has approved for there to be duty-free waivers for the importation of various required vehicles for gold producers. That waiver is dependent on the declaration of gold by producers, the Gold Board said.

The statement said that the Gold Board is aware of ongoing efforts to engage the mining community in looking at support as well as addressing any challenges ahead. “The GGB wishes to remind producers and traders of their legal obligation to declare their production and transactions in accordance with the Guyana Gold Board Act,” the statement added.

Stabroek News reported on Monday that gold declarations for the first two months of the year have plunged by almost 40% and with less gold being exported, earnings have also dropped significantly.

Figures show that for January and February, gold declarations stood at 56, 263 ounces compared to 92, 721 ounces for the corresponding two months last year representing a steep drop of 39.3%. Earnings from gold exports for both the Guyana Gold Board and dealers were pegged at US$55.5 million compared to US$71.4 million last year. Exports have also dropped.

Gold declarations and earnings have been on a downward spiral since last year following a record high in 2013.