GOLD PRODUCTION

Evening Star, Issue 22067, 28 June 1935, Page 11

GOLD PRODUCTION

DOUBLED IN THREE YEARS SALE OH LOHDON MARKET The development of mining fields by companies has resulted in greatly increased 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 2,000 ounces every three weeks at present, about 1,700 ounces coming from the South Island mines. The gold is assayed and melted in the dominion and snipped 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 tbo gold paid into the banks was old jewellery That supply is practically exhausted, and the gold now being presented at the banks is alluvial. Many gold-buy-ing firms which had mushroom growth in the depression and when the value of gold rose, have gone out _of existence, and jewellers are now being offered very small quantities of old gold. The gold being won by the individual prospectors is apparently of small quantity. An impression exists that the bank makes a handsome profit on gold dealing, but the fact is that when the gold is sold on the London market, the miner or the company receives the full price, pins 24 per cent, on the exchange, with a reduction of Is an ounce for assay and melting fee and Is 6d an ounce as the bank’s charge for the full service. The minimum charge on any quantity under one ounce is .2s 6(V The business has developed greatly in recent years, as the sellers find that assay returns may be checked without delay, and they are saved the trouble and higher expense of shipping squall quantities to London,