Gold tops $5K per ounce: Here’s what it means for Nevada
Gold briefly topped $5,100 per ounce for the first time Monday, and as the fifth-highest gold producer in the world, this is good news for Nevada.
With gold hitting a record on the global market, for Nevada, this means more jobs, more tax revenue and more gold exploration, according to mineral and mining experts.
“Mining has long been a defining part of Nevada’s economy and is a key factor that sets our state apart nationally and internationally,” the Nevada Governor’s Office of Economic Development said in a statement Monday. “Nevada has the unique momentum to create and keep more high wage jobs and investment in the state.”
Why is gold increasing? What does this mean for the state?
Gold prices have seen a steady increase since 2024, with people turning toward it during times of global uncertainty as a recession-proof resource. With tensions surrounding the Middle East, ongoing news surrounding Greenland and the recent events in Venezuela, people view it as a safe investment, said Andrew Martin, assistant professor of economic geology at UNLV.
“So, in summary, the Silver State will shine bright in gold with this recent surge in prices,” he said. “Expect more mining, more exploration and prospecting and ultimately more prosperity for our state.”
For the same reasons as gold, silver also hit a record Monday, reaching as high as $117 an ounce.
“At any price level, Nevada will continue to be recognized as one of the world’s premier places to mine critical minerals like gold, reflecting the industry’s commitment to safe, responsible mining practices and the rewarding careers it provides to 30,000 Nevadans,” said Amanda Hilton, president of the Nevada Mining Association, in a statement.
Gold production in Nevada
In 2024, 3.5 million ounces of gold were produced in Nevada, a 14 percent decline from 2023, according to the latest data available from the Nevada Mining Association. In 2024, gold was nearly half the price it is today.
Mining accounts for a large share of Nevada’s economy, though, generating $16.6 billion in economic output in 2024, according to a report from Nevada Mining Association, with gold being a major player.
In 2024, the latest data available, $488.3 million in taxes were paid by the mining industry.
Nevada has around 30 active gold mines and some of the largest in the world, with the majority operated by Nevada Gold Mines, a joint venture between Newmont Corp. and Barrick Gold Corp. NGM employs around 7,000 people directly and around 4,000 contractors.
Nevada Gold Mines did not respond to a request for comment Monday.
Nevada as the Silver State has one of the largest silver mines in North America at the Rochester mine from Coeur Mining.
Simon Jowitt, Nevada geologist and director of the Nevada Bureau of Mines and Geology, said the mine produces around a half-billion dollars in silver alone.
“There’s lots of interest in silver right now, and increasing,” he said. “Still nowhere near as much as gold, but there’s a lot of potential.”
Mining exploration
The rising cost of gold and silver is fueling more exploration in the state, and Jowitt said exploration is expected to be “very attractive” even if the price of the precious metals goes down.
Derek MacPherson, president and CEO of exploration company West Point Gold, said the gold exploration business has been “starved” in recent years, and the new boom will bring new money into the industry. West Point has three exploration projects in Nevada and more in Arizona.
Gold exploration works similar to a venture capital business, relying on outside investors to fund projects, said MacPherson. With the price of gold increasing, so is the amount people are willing to invest.
“Now that there is a little bit more capital in the space with gold prices picking up, we’re seeing exploration pick up,” said MacPherson.
West Point specifically is increasing its exploration “as we speak,” with more investors interested in its stock and availability of capital. Now, MacPherson can say West Point is “very well funded.”
With its increased capital, West Point is looking to explore more within its three plots in Nye and Esmeralda counties. MacPherson is also aware of other companies looking to or already increasing their exploration in Nevada.
“All those businesses are going to be very busy,” said MacPherson of mining exploration companies. “I think it’ll be a really good thing for jobs and a lot of Nevada businesses.”
Even with NGM’s massive workforce, experts Martin and Jowitt said small- and medium-sized mining companies might get their big break.
“Higher gold prices equals more job certainty,” said Martin. “(This) means some smaller sub economic prospects, generally owned by junior companies, may get the bump they need to start producing, again creating more jobs.”
Jowitt, on the other hand, said to look out for more mergers and acquisitions as companies attempt to “ramp up production” and exploration to take advantage of the high cost.
A previous version of this article incorrected stated the amount of tax revenue mining generates.
Contact Emerson Drewes at edrewes@reviewjournal.com. Follow @EmersonDrewes on X.
