Gold price surge sees abandoned Welsh mine revived amidst Donald Trump's tariff trade war
A once-abandoned gold mine situated in the hills of a Welsh national park is experiencing a remarkable revival as global gold prices surge past $3,300 per ounce.The Clogau-St David's mine, which had been flooded and dormant for years, is now transitioning from exploration to proper operations under Alba Mineral Resources.This transformation comes as gold prices have skyrocketed in response to US President Donald Trump's global trade war, creating highly favourable economic conditions for the venture."The economics of coming in and finding unworked seams of gold is obviously very attractive," said George Frangeskides, executive chairman of Alba.The precious metal has seen a hefty 26 per cent rise in 2025 alone, driven by global uncertainties and trade tensions. For this historic Welsh mine, the timing couldn't be better as it prepares to capitalise on gold's glittering performance in today's volatile market.Local legend suggests a miner discovered the first gold flakes by accident after kicking a piece of rock in the Welsh countryside. After six decades of prosperity, the mine shut in 1911, reopening only occasionally in subsequent years.When it finally closed in 1998, gold sold for just $300 an ounce. Today, with prices more than ten times higher, Alba has spent months pumping water from the flooded mine to begin operations."We had an idea that with modern techniques we could find unworked seams of gold here," Frangeskides told AFP.Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.Mark Austin, the project's chief geologist, has four decades of African mining experience, oversees the drilling, blasting and hauling of ore to the surface.The surge in gold prices is largely driven by US President Trump's tariff policies, which have created significant market instability. These stop-start tariffs have particularly targeted vital minerals, shaking up global markets and pushing investors toward safe-haven assets.A weakened US dollar, now at a three-year low, has further boosted gold's appeal for international investors. The first quarter of 2025 saw massive inflows of 226.5 metric tons into Gold ETFs, representing over $21billion in investment. Central banks are also fueling the spike, with China recently increasing its gold reserves. Analysts now have their sights set on the $3,500 per ounce mark as gold continues its meteoric rise.This pattern echoes the 1980 surge during the Iranian Revolution, when geopolitical unrest similarly drove investors toward tangible assets.Clogau gold is prized not just for its rarity, but for its prestigious connection with Royal Family members, including Queen Elizabeth II, King Charles III, Princess Diana and Princess Catherine, who have all worn Clogau gold wedding rings.This royal tradition dates back a century to the wedding of King George VI. The royal connection "adds, obviously, to the cachet, the allure of the project that we're involved with", Frangeskides explained.LATEST DEVELOPMENTS:B&M announces plan to open 45 new stores - list of locations hereMorrisons to close 16 stores across UK TODAY - full list of locations hereEconomy in crisis as US faces 'worse than recession' under TrumpThis prestigious association allows Clogau gold to fetch up to 10 times the standard market rate. World Gold Council market strategist John Reade noted it's not the quality of the gold that attracts its premium price but its status as a "boutique mine".Throughout its history, the mine has produced only 80,000 ounces (2.5 tonnes) of gold, compared to global annual production of around 3,600 tonnes.This scarcity, combined with royal heritage, attracts "traditionalists, people who may be strong monarchists" willing to pay premium prices. Alba has so far invested £4million ($5.3million) into the site.Despite limited production of just a few hundred ounces per year, Frangeskides believes the venture will be highly profitable. Early test auctions have already proven remarkably successful.
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A once-abandoned gold mine situated in the hills of a Welsh national park is experiencing a remarkable revival as global gold prices surge past $3,300 per ounce.
The Clogau-St David's mine, which had been flooded and dormant for years, is now transitioning from exploration to proper operations under Alba Mineral Resources.
This transformation comes as gold prices have skyrocketed in response to US President Donald Trump's global trade war, creating highly favourable economic conditions for the venture.
"The economics of coming in and finding unworked seams of gold is obviously very attractive," said George Frangeskides, executive chairman of Alba.
The precious metal has seen a hefty 26 per cent rise in 2025 alone, driven by global uncertainties and trade tensions.
For this historic Welsh mine, the timing couldn't be better as it prepares to capitalise on gold's glittering performance in today's volatile market.
Local legend suggests a miner discovered the first gold flakes by accident after kicking a piece of rock in the Welsh countryside. After six decades of prosperity, the mine shut in 1911, reopening only occasionally in subsequent years.
When it finally closed in 1998, gold sold for just $300 an ounce. Today, with prices more than ten times higher, Alba has spent months pumping water from the flooded mine to begin operations.
"We had an idea that with modern techniques we could find unworked seams of gold here," Frangeskides told AFP.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Mark Austin, the project's chief geologist, has four decades of African mining experience, oversees the drilling, blasting and hauling of ore to the surface.
The surge in gold prices is largely driven by US President Trump's tariff policies, which have created significant market instability.
These stop-start tariffs have particularly targeted vital minerals, shaking up global markets and pushing investors toward safe-haven assets.
A weakened US dollar, now at a three-year low, has further boosted gold's appeal for international investors.
The first quarter of 2025 saw massive inflows of 226.5 metric tons into Gold ETFs, representing over $21billion in investment.
Central banks are also fueling the spike, with China recently increasing its gold reserves. Analysts now have their sights set on the $3,500 per ounce mark as gold continues its meteoric rise.
This pattern echoes the 1980 surge during the Iranian Revolution, when geopolitical unrest similarly drove investors toward tangible assets.
Clogau gold is prized not just for its rarity, but for its prestigious connection with Royal Family members, including Queen Elizabeth II, King Charles III, Princess Diana and Princess Catherine, who have all worn Clogau gold wedding rings.
This royal tradition dates back a century to the wedding of King George VI.
The royal connection "adds, obviously, to the cachet, the allure of the project that we're involved with", Frangeskides explained.
LATEST DEVELOPMENTS:
- B&M announces plan to open 45 new stores - list of locations here
- Morrisons to close 16 stores across UK TODAY - full list of locations here
- Economy in crisis as US faces 'worse than recession' under Trump
This prestigious association allows Clogau gold to fetch up to 10 times the standard market rate. World Gold Council market strategist John Reade noted it's not the quality of the gold that attracts its premium price but its status as a "boutique mine".
Throughout its history, the mine has produced only 80,000 ounces (2.5 tonnes) of gold, compared to global annual production of around 3,600 tonnes.
This scarcity, combined with royal heritage, attracts "traditionalists, people who may be strong monarchists" willing to pay premium prices. Alba has so far invested £4million ($5.3million) into the site.
Despite limited production of just a few hundred ounces per year, Frangeskides believes the venture will be highly profitable. Early test auctions have already proven remarkably successful.
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