On September 30, 2024, gold prices soared to a historic high, surpassing USD 2,660 per ounce, reflecting a significant shift in global economic conditions. This surge is attributed to declining yields from other investments, depreciation of the US dollar, and a reduction in interest rates by the Federal Reserve, prompting investors to view gold as a safer asset.
According to a report from Argentina's Mining Secretariat, gold exports saw a staggering increase of 179.2% in August 2024, amounting to USD 431 million, which constituted 78% of the country’s total mineral exports. Overall, mineral exports reached USD 550 million for the month, marking a 79.9% year-on-year increase.
In the first eight months of 2024, Argentina's mineral sales totaled USD 2.736 billion, a 4% increase from the previous year. Notably, metal ores contributed significantly, with gold alone accounting for USD 1.876 billion, representing 69% of total exports in this category. In contrast, lithium exports fell by 38.4%, totaling only USD 50 million in August.
The International Energy Agency forecasts that lithium demand may increase between 12 to 42 times by 2040, depending on the energy transition's progress, indicating potential future price adjustments.
Major destinations for Argentina's mining exports in August included Switzerland, India, the United States, and China, which collectively accounted for 89% of total mineral exports. These countries predominantly imported metal ores, which made up 91% of sales in August and 86% in the year to date.
This remarkable growth in gold exports amid a backdrop of fluctuating global economic conditions emphasizes the metal's role as a critical investment during uncertain times, highlighting the interconnectedness of international markets.