Gold price highest in eight years

The gold price in Guyana has increased to US$1405 per ounce, the highest the country has seen since 2011 and the Guyana Gold and Diamond Miners Association (GGDMA) says the increase is welcomed.

Administrative Manager of the GGDMA, Avalon Jagnandan told the News Room during an interview Monday at the association’s office on North Road, Georgetown that the increase may only be temporary.

However, he said for the increase to have an impact on miners, the price would have to remain the same or increase even higher.

“What we would like to see is that this price continues where it is now or continues to go up, that is when it is really going to benefit the miners…we welcome the increase in the price for gold, however, we’re hoping that this increase will continue upwards,” the Administrative Manager said.

This is the highest the gold price has been since 2011 when it was at US$1900 per ounce. Over the past couple of years, the price did not increase above US$1300.

“Although it is good for miners temporary, who tends to benefit more is the government because obviously, they would benefit from the royalties and so they’re collecting,” the Administrative Manager said.

Jagnandan said when there is gold in large amounts the price lowers and if there is a shortage the price increases.

Meanwhile, gold miners in Guyana over the years have complained about poor road conditions leading to their mining operations and as such, Jagnandan said transportation cost has also increased.

“Miners went through a few tough years, for the past two years it has been really tough on miners, the weather hasn’t been good for the miners [in] a lot of instances the roads…there have been a lot of breaking down of equipment on the road and so forth and then all miners have loans to pay, they have bills to pay.”

The GGDMA is encouraging miners to sell their gold directly to the Guyana Gold Board, which promises a fair and worthy trade.

“We encourage our miners to sell to the Gold Board so in that way their records are clear and in that way too, once they are tax compliance they can also benefit from other initiatives and policies the government have in place for the miners,” the Administrative Manager said.