Gold prices rose more than $15 an ounce Wednesday as investors out to make quick profits ditched the dollar in favor of gold and other commodities, including oil futures. In trading Wednesday gold prices reached $1,117, and the metal's 2010 futures rose above $1,120.

The prices have contributed to excitement in Chile amid prospects the country may earn ranking among the Top 10 gold producers if current mining development plans are completed on schedule.

Projections by the Chilean National Copper Commission this week stated the country would likely triple its gold production within the next five years. The opening of new mines in Chile's north will take production from 39 tons a year to nearly 110 tons, the Santiago Times said, quoting the report.

And as Chile's gold production rises according to plan, the total output would make the country one of the world's 10 largest producers. Chile currently ranks 16th in global gold production.

Mining Minister Santiago Gonzalez said development of the new mines would transform the Chilean gold industry into one of the biggest in the world.

The increased production is projected to come from the expansion of existing mines and two new mines in the Atacama region, 500 miles north of the capital.

Work started recently on developing the Pascua Lama mine with a projected $3 billion investment by Barrick Gold, the world's largest pure gold mining company with headquarters in Toronto. Production is scheduled to begin by 2012.

Another Canadian company, Kinross, plans to start work on a $1 billion development of the Lobo Marte gold mine by 2012. Kinross estimates the mine holds 185 tons of gold.

A further $3 billion project along Chile's border with Argentina involves Barrick and Kinross working together to develop gold assets in the area. Both companies are active in other countries in South America.

The Independent newspaper in London pointed out that gold has risen nearly 50 percent since Lehman Brothers' collapse in September 2008.

Carsten Fritsch, an analyst at Commerzbank, told the newspaper a further gold price increase could not be discounted.

Other metals analysts cited by the media said demand from China, India and Russia had reversed the trend of central banks dumping gold on the markets.

Natalie Dempster, the head of investment at the World Gold Council in New York, told The Independent investors are using gold as a hedge against the weakening dollar "and against concerns that central banks will not remove quantitative easing measures in time, which would lead to inflationary pressures."

"But prices have also been helped by central banks becoming net buyers in the second quarter. China, Russia, and especially India, have reversed a trend where central banks have been sellers of gold for years," Dempster told the newspaper.

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