Senyo Hosi: High Gold Prices Don’t Guarantee More Output—Ghana’s Production Still Inelastic
Senyo Hosi, an economist and finance analyst, has said that higher gold prices around the world don’t always mean that Ghana will produce more gold because of structural, operational, and regulatory issues. He said in a statement on Wednesday, January 7, that even though gold prices were at an all-time high in 2025, Ghana’s large-scale gold production fell from about 104 metric tonnes in 2024 to about 101 metric tonnes in 2025.
Mr. Hosi said the drop was due to the fact that gold supply is not very flexible, operational problems, and regulatory issues. He said that gold mining is different from making things because it requires a lot of money and work. Most big mines are already working at or near full capacity, so it’s hard to quickly increase output even when prices go up. He said that artisanal and small-scale mining (ASM) is more flexible, but that stricter rules in 2025, like limits on new concessions and stricter controls on mining equipment imports, made production harder.
He also talked about how smuggling played a role, saying that the reported increases in ASM production were mostly due to smuggled gold being made legal instead of new production. Mr. Hosi said that government programs like GoldBod’s Domestic Gold Purchase Program, stronger enforcement, and the elimination of withholding taxes have made the market more open and the data more accurate.
In general, he said that Ghana’s gold supply is still mostly inelastic in the short term. He urged policymakers to focus on long-term investment, strategic reserves, and industrialization to make the economy more resilient. He also stressed that higher prices alone do not explain recent production trends.
