Miners panic as gold prices fall

By Bianca Mlilo

Gold prices have rapidly fallen and this has caused panic in miners and gold dealers, forcing them to hold onto their precious metal hoping that the prices will soon normalise.

On Friday the highest grade of gold was attracting a price of $35 per gram, down from $41 in October.

Gold density is measured in what is termed specific gravity (SGs).

Figures released by the Zimbabwe Miners Federation (ZMF) pegged prices of the various grades of gold ore as follows: SG 90 percent and above – $35,48/g; SG above 85 percent but below 90 percent- $34,92/g.

SG above 80 percent but below 85 percent stood at $34,17/g; SG above 75 percent but below 80 percent at $33,80/g.

Fire assay cash prices were at $35,67/g and fire assay transfer was at $36,04/g.

ZMF chief executive officer Mr Wellington Takavarasha said the fall in gold prices was as a result of falling prices of the metal on the global market.

“The decreases in gold prices are caused by fluctuating gold prices on the international market and we have to follow global trends,” said Mr Takavarasha.

“Gold prices are determined by the London Bullion Market Association and global prices were recently at around $40, and are presently around $35.”

A gold dealer, Mr Zithelo Chengu said the fall of the gold price had numerous repercussions to them and the miners as it disturbed their operations.

“Miners incur costs of about $25 in the mining of a single gram of gold and $41 is a reasonable price. For that price to suddenly fall means them suffering in operations costs. This means there is a loss of about $3 000 on a single kilogramme of gold which is about salaries of six to 10 workers.”

He said the downward spiralling of the prices left them in a position of uncertainty and said this would likely cause the miners to withhold their gold and that would in turn affect the metal market. Chronicle