Gold production in Mexico from January to September 2022 grew at a year-on-year rate of 0.8%, to 60,455.2 kilos with metallic content, Inegi reported.
While gold can be easily sold in numerous markets around the world and it is not difficult to determine its market price at any given time, reference prices are generally based on London gold market quotations.
In all of 2021, Mexican gold production was 80,989 kilograms.
But production for the first three quarters of the current year is far from its all-time high for a similar period in Mexico: the current record is from 2015, when the country produced 92,930 kilos.
Who are the main producers in the country? Newmont, Torex Gold, Fresnillo plc, Pan American Silver, Equinox Gold, Agnico Eagle Mines, Alamos Gold, Coeur Mining, First Majestic Silver, Minas de Bacis, Argonaut Gold and Minera Frisco.
Gold production
According to Barrick, gold bullion is held as an asset class for a variety of reasons, including as a store of value and safeguard against the collapse of paper assets such as stocks, bonds and other financial instruments that are traded in fiat currencies not exchangeable for gold (at a fixed exchange rate) under a «gold standard,» as a hedge against future inflation and for portfolio diversification.
Governments, central banks and other official institutions hold significant amounts of gold as a component of foreign exchange reserves.
As there are a large number of gold buyers available, Barrick, for example, does not rely on selling gold to a single customer.
After totaling 54,991 kilograms in the first nine months of 2019, gold production, measured in metal content, from Mexico was 50,679 kilograms in the same period of 2020.
According to the U.S. Department of Commerce, the market value of Mexico’s mining sector in 2021 was US$1.81 billion.
About half of Mexico’s mining production consists of precious metals mining, while the remaining production is made up of 40% non-ferrous, 5% metallurgy and 5% ores.
In 2021, mining production reached US$16.68 billion.
Finally, Mexico is a large consumer of mineral fuels and in 2021 imported fuels were valued at US$43 billion.
About 65% of Mexico’s total mineral fuel imports originate in the United States.
