PRICE OF GOLD

Evening Post, Volume CXVIII, Issue 56, 4 September 1934, Page 8

PRICE OF GOLD

RECORD IN AUSTRALIA

GREATER OUTPUT

(From "The Post's" Representative.)

SYDNEY, August 30,

In view of the announcement this week that tho Commonwealth Bank had paid a record price for gold delivered to the Iloyal Mint in Molbouino it is not surprising that increasing interest should be displayed in various gold mining activities, good and bad. Tho bank paid £8 12s an ounce fine compared with £4 4s lid, tho ruling rate- in 1930. As overseas influences are so important when it comes to tho price of gold, it is impossiblo to say whether tho present high rato will be maintained, but experts consider that there will not bo a serious fall for some timo to come. Although tho boom in gold-mining shares has ceased, high prices aro still paid for somo issues. However, a certain amount of uneasiness has been created in the minds of the investing public consequent upon inquiries that have recently been made by tho police into tho operations of somo important companies. It was announced this week that New South Wales detectives had begun another scries of inquiries, which would probably lead to sensational disclosures.

Meanwhile'it is of interest to noto the importance of gold production to employment and business in Western Australia. Last year that State produced C53,7330z fine, valued at £5,308,385, at an average price per line ounce of £8 2s 4d. In 1930 t!x> production of gold was 416,.'J0U0z, valued at £1,708,023. Tho increased production represents not only additional output from old mines, but also tho re suit of increased prospecting and investment in now mines. Production costs aro now lower than they have been for years, and continued increase in the value of production from tho gold industry may be expected, Tho increase in investment on a substantial scalo is a valuable contribution towards business recovery in tho State.

Queensland is now the second largest gold-producing State in Australia. During tho year ended Juno last the yield was 101,694 fine ounces, valued at £.431,968, or nearly twice as much as the preceding financial j'ear. In Queensland there has been a great revival in prospecting, and the announcement of a plan to develop concessions in Northern Queensland by a British company with a capital of £600,000 is an indication of the increasing interest in the development of Queensland's gold and other mineral resources.