Being one of the four most precious metals in the world, gold is certainly something to be valued. Over the past 12 years, the production of gold has increased every single year or has remained constant, except in 2019, when the worldwide production of gold experienced a slight decline.

This decline is predicted to continue through the next few years. When gold production declines, gold is likely to increase in value, and this translates into lots of good things for countries that produce gold.

Top 3 Gold Producing Countries

The top 3 gold producing countries in the world are:

  • China, with almost 400 tons of gold produced in 2019
  • Russia, with between 300 and 350 tons of old produced in 2019
  • Australia, with gold production rates almost on par with Russia.

But what benefits does gold production bring to these countries?

An Increase in Quality Infrastructure

Gold is mined from mountains and remote areas that are far away from big cities and development. These areas normally do not have much of their own infrastructure. When companies and countries invest in mining gold, they also invest in developing the surrounding areas so that their procedures can run smoothly.

They are likely to build roads, power stations, and other basic necessities in those areas. So, as a result of increased gold mining, these countries also get better infrastructure in remote, rural areas.

Job Creation

Apart from infrastructure, when companies invest in the area, it also creates tons of new jobs for the residents of those areas. When extracting gold, countries need miners, contractors and other employees to run the operation smoothly.

The jobs are either made directly within the gold extraction business, or as a result of it. This means that because of the growing infrastructure around the gold mining project, jobs can be created in other fields as well.

For example, if the government or the company in charge creates living quarters for the miners and employees, a local in the area could start a restaurant or café close by and start earning money. This kind of development often has a ripple effect and ends up creating many more jobs than intended, allowing  the surrounding areas to thrive economically.

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