Tsue ~ That's What She Said: Remote Scottish village to open mainland UK’s only working goldmine

Saturday, January 14, 2012

Remote Scottish village to open mainland UK’s only working goldmine

A remote, extremely rural Scottish village is to open mainland UK’s only working gold mine.

The BBC has reported that Scotgold Resources is due to open the mine and that it will be open between eight and ten years to take advantage of the current high price of gold.

The village – called Tyndrum – is on the edge of the beautiful Rannoch Moor in Scotland’s West Highlands.

Work started on the Cononish mine in the ‘80’s when gold prices were high; many people will remember the immense price peak that gold hit in the summer of 1980. However prices gradually came down as the UK’s economy recovered from recession. This made work on the mine far less financially viable than before, hence the closure of the mine.

Taking advantage

Now that gold prices have been on the up – peaking at over $1,900 an ounce in September – work is set to begin in the mine once more. Gold prices have soared since the global financial crisis hit in 2007 and has tightened its iron grip in the years since. This is because investors are always seeking safe places to store their capital. Gold is so rare that it will always be an attractive – and highly sought-after – way to do this.

Investors are expecting the mine to yield 20,000 ounces of gold over the next eight to ten years. This is sure to please the best gold buyers, who depend on gold to make their profits.
However, finding such investors was difficult for Scotgold and they faced opposition from UK investors. Australian company Scotgold eventually turned to their home country for the capital they needed.

Opening the mine once more will create jobs, vital in today’s economy with the record levels of unemployment that the UK is suffering right now.

Gold is certainly back in fashion. Lots of people have woken up to the fact that selling their gold jewellery can pay far more than it did pre-recession. However, with reports of cash for gold scams doing the rounds repeatedly; it makes sense to use a gold price comparison site so that you can see who is paying the best price for gold.

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