Despite current market conditions and commodity prices, 2008 has ended up as a strong year for gold. According to the annual PricewaterhouseCoopers (PwC) Global Gold Price Survey, released yesterday, the price started at $846 on January 2 and averaged over $800 for the year. There was significant intra-period volatility in the gold price over the year, ranging between $712 and peaking at $905 in September. In early December, when the survey was conducted, prices retreated somewhat to $764.

 Of the companies surveyed, 62% have determined the gold price assumptions that will be applied to ongoing reserve determinations and carrying values at December 31, 2008. The average price indicated by respondents is $734 for reserves and $751 for carrying values (2007: $575 for reserves and $640 for carrying values).

The survey showed that most companies (69%) plan to use the same prices over time. Of those planning to use variable prices over time (20%), the average prices reported are trending downwards in the long term $787 in 2010 and $732 in the long term. A smaller percentage of this year’s respondents are disclosing price assumptions in determining reserves and carrying values this year.

Despite this years market conditions, most companies reported no expected changes to their long term production levels; one third of those surveyed indicated that their production levels would increase in 2008 to 33.34 Moz versus 2007 production of 34.63 Moz.

The survey polled 45 of the leading gold mining companies from North America, Australia and South Africa. The annual survey examines what gold price gold mining companies have used to assess carrying values, the issues that have influenced their determination and disclosure that is planned for their 2008 annual reports.