Market

Prospecting for metals is, in principle, directly proportional to metal prices, with some years of delay. Over the past two years, a moderate increase in mining production has been seen by the high gold price.

The demand for gold consists of jewelry manufacturers, high technology industry, central banks and investors. In consumers, gold has primarily an emotional, cultural and financial value. It is also used to a large extent in dental care due to gold biocompatibility. In addition to this, there are applications in the space industry, for fuel cells, the chemical industry and nanotechnology.

Trends in supply

Total supply rose by 5 percent in 2016, which could almost entirely be explained by recycling gold by 17 percent to just over 1,300 tonnes in response to the high gold prices during the year. The recently broken gold remained at the same levels as in 2015, ie just over 3 200 tonnes, which means that the total is greater than the 10-year average of approximately 4 000 tonnes.

Gold as value insurance

The value-preserving feature of gold has prompted investors to take positions in gold to protect themselves from inflation and low real interest rates. Even situations that cause turbulence or concern in the financial market are generally considered to be favorable investments in gold. Gold’s status as a monetary payment instrument at a global level whose value is not hampered by inflation has meant that gold is considered a “safe” investment.

Mining in Sweden

In the Nordic region there is a strong tradition of mining and mining is an important basic industry. Through Norway, Sweden and Finland, a fennoscandic shield extends, a geological formation that is considered to have good conditions for mineral deposits. Other conditions, such as efficient infrastructure, well-functioning legislation and availability of mining and mineral skills, make the Nordic region interesting for exploration.

Prospecting rate in Sweden has increased in recent years, but the market is still underdeveloped compared to the corresponding geological areas in Australia and Canada.