GOLD PRODUCTION

Evening Post, Volume CXIX, Issue 152, 29 June 1935, Page 5

GOLD PRODUCTION

INCREASED OUTPUT j SOUTH ISLAND MINES ! (By Telegraph.) (Special to the "Evening Post.") DUNEDIN, This Day. The development of mining fields by companies has resulted in greatly-in-creased quantities of gold being handled by the banks. The average quantity of gold paid into the Bank of New Zealand, the. biggest of the gold offices in New Zealand, is about 2000 ounces every three weeks. At present about 1700 ounces are coming from South Island mines. The gold is assayed and melted in the Dominion and shipped to London for sale on the open market. The quantity is six times greater than that handled seven years ago, and more than double that of three years ago. Before the gold-mining industry received its impetus, most of the gold paid into the banks was old jewellery. That supply is practically exhausted and the gold now being presented at the banks is alluvial. An impression exists that a bank makes a handsome profit on gold dealing, but the fact is that when gold is sold on the London market the miner or company receives the full price, plus 24 per cent, on exchange, with a reduction of Is per ounce for assay and melting fee and is 6d per ounce as the bank's charge for the full service. The minimum charge on any quantity under one ounce is 2s 6d. , . Business has developed greatly in recent years, as sellers find that assay returns may be checked without delay and they are saved the trouble and higher expenses of shipping small quantities to, London.