Where Is Gold Found: Understanding The Sources & Purity Level of Gold

Gold has always been a way for investors to store value. A look at the price increase in gold over the past century shows why people have this opinion. The spot price of gold has risen from $20.75 per ounce in November of 1925 to $4,002 in October 2025. Though the price isn't guaranteed to continue going up, it remains strong in the current market.

There are several reasons behind the continued popularity of gold and other precious metals like silver and platinum. One of the main reasons is that gold remains quite rare. Where is gold found? And what is the process of taking from the ground and making it into the 99.9% pure coins and bars that people buy as investments?

One of the Rarest Metals

Gold occurs in the Earth's crust, but it is one of the rarest elements, with between 1 and 4 parts per billion. Even though mines take gold out of the ground every single day, they don't do so at a rate that will impact the value of gold. In other words, there isn't a huge gold deposit somewhere that will cause the price of gold to fall significantly.

Countries even used the gold standard to back their currencies with gold reserves. Though every country has stopped this practice and likely won't return to it, it demonstrates the value that gold has as a rare metal.

Why People See Gold as a Safe Investment

Scarcity is one of the reasons why people want to invest in gold, but there are others.

• Gold is durable. It isn't going to rot, and if it's properly stored, it won't rust or corrode.
• Gold is a safe haven. It tends to increase in value or hold value during bear markets and periods of inflation.
• Gold doesn't expose investors to counterparty risk. No government or company can make a policy or decision that will impact the value of gold in the long term.

For these reasons, gold remains an important part of investment strategies.

Where Does Gold Come From?

Gold could potentially come from anywhere in the world. However, certain regions are known for their gold production.

• China is the world's largest gold producer. According to the World Gold Council, it mines about 10% of the world's gold.
• Russia is the second biggest gold producer. Much of its gold comes from Eastern Russia and Siberia.
• Australia is another major producer. The most active mines are in Western Australia.
• Canada produces a large amount of gold from mines in Quebec and Ontario. There are also mines in Arctic regions like Nunavut.
• The United States produces over 150 metric tonnes of gold. Most of the mines are in the Western U.S.
• Ghana is Africa's biggest gold mining country, with its mines producing more than South Africa.

Other gold-producing nations include Mexico, Peru, and Indonesia.

Types of Deposits

There is a second part to the answer to "where is gold found?" Gold deposits come in two different forms.

Primary deposits, called lodes, are when gold is embedded underground in hard rock. Mining companies either dig underground mines to find the gold or use open-pit mines, where they dig up the earth and sift through it to find gold.

Place mining is different from lode mining. It involves finding secondary deposits. The gold in these deposits is already above ground. It usually accumulates in streams or rivers after the water erodes the rock that contains the gold away. Since gold is dense, it sits on the bottom of the waterway.

In historic times, people used techniques like gold panning, and larger mining companies rely on dredging and other techniques to find gold at a faster rate.

What Happens to Gold after Mining

Gold has to be 99.5% to 99.9% pure before it is ready to be used on investment products. Refineries use smelting in hot furnaces to burn off any remaining impurities in gold. It is then typically put in an electronic solution for another round of purification. The result of this second step is bullion-grade gold.

Mints then melt the gold at least 1,064°C and make coins or bars with it.

Why Where Gold Is Found Is Important

There are several reasons to consider where gold coins and bars come from.

• Ethics: Some gold mines are in conflict zones or use unsafe or unethical labour practices.
• The environment: Some open-pit mines can damage the environment, and some mines might dump chemicals that can get into water or soil.
• Purity: The gold won't be worth the expected value if it isn't pure or properly minted. Only coins with bullion-level purity actually have the same value as the spot price.
• Legal issues: Gold needs to meet industry standards for authentication and anti-money laundering.

Reputable mints and dealers take steps to ensure purity. They also cover issues like legal compliance and ethics.

The Best Sources for Gold

There are two considerations when thinking about where to get gold for investing. The first is the mint that makes the product, and the second is the dealer who sells the product.

Which mints make the best gold products? Government mints like the Royal Canadian Mint make investment-grade coins and bars. The coins from the mints are considered legal tender, as well as being easier to authenticate because of documentation and anti-counterfeit features.

Private mints aren't associated with governments. However, some are well-respected and transparent about their operations and standards. The Scottsdale Mint is an example of a private mint like this.

Invest in Gold Today

Sprott Money is one of the most respected names in the precious metals industry. We offer coins and bars from the world's best government and private mints. These are trustworthy sources that meet all the requirements you need to ensure you get full value from your gold products.

If you wish to take advantage of future gold or silver price moves, choose one of Canada's most trusted precious metals dealers. Start by browsing the gold products from Sprott Money to find the best investments for your portfolio.