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  • Fri 17 Oct 2025 : We are now paying SPOT on ALL silver bullion.

    Due to exceptional volatility in the silver market, refineries have temporarily paused silver processing. This is the result of silver leasing costs reaching 100%, making short-term refining uneconomical across the entire industry. As a result, we're currently unable to buy SCRAP silver at our usual rates. This situation is beyond our control and is affecting all precious metal dealers, not just us. Please note that our gold buying rates remain completely unaffected and continue as normal.
How is Gold Mined?

How is Gold Mined and What are the Methods?

Gold is mined by 4 different methods. Placer mining, hard rock mining, byproduct mining and by processing gold ore.

Each of these categories has it's own unique methods of extracting the gold from the surrounding materials.

In placer mining, gold is retrieved by metal detecting, panning, cradling, sluicing, and dredging. This is the most common gold mining category for amateur gold hunters, using gravity and water to separate the dense gold from the other materials that surround it.

Hard rock mining is the process of using open pit or underground mining tunnels to retrieve the gold from the rock. This method of gold mining is responsible for recovering most of the worlds gold supply.

Byproduct mining is related to hard rock mining in that open pit or underground mining tunnels are used. In byproduct mining, gold is a secondary find. The mining operation's main purpose is to recover copper, sand, gravel or other products, but significant quantities of Gold exist to make byproduct mining profitable. An example of this kind of mining would be the Grasberg mine in Papua, Indonesia, which was developed to extract copper from the earth. Though Gold is not the primary product, this mine produces more Gold than any other mine globally.

The final category of gold mining is the processing of gold ore. This method is largely becoming deprecated as the yield of Gold is often very low and the environmental impact and costs of the operation are substantial. Gold ore is finely crushed rock or earth containing trace amounts of Gold, which are extracted using a chemical process. The most commonly used chemical for this process is Cyanide.

Further Reading

Also in this section

Where Was Gold Found? A Journey Through Historical Mining Sites

Where Was Gold Found

Gold has captivated humans for centuries, sparking dreams of wealth and adventure. From the ancient pyramids of Egypt to the rugged mountains of South America, the quest for this shiny metal has shaped civilisations and written history. But where did it all begin? As we explore significant historical mining sites, we uncover not only where gold was found but also how these discoveries transformed societies and economies, fueling ambition and igniting countless stories of success and struggle along the way.

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