Indigenous mining of gold in Ghana dates as far back as the 4th century. Large scale mining began in Ghana around 1500. Over the years, gold has been Ghana's major foreign exchange earner. However, the gold mining industry has gone through periods of gold booms and declines. Several measures were taken to make the gold mining sector attract foreign investment with little success until 1986 when the Minerals and Mining Law was promulgated. This paper attempts to analyse the factors that have affected the trends in gold mining in Ghana over the years and to suggest useful guidelines in mineral policy formulation to attract more foreign investment to enhance gold mining in Ghana. The results of the analysis show that the creation of a conducive investment climate by the promulgation of the Minerals and Mining Law (PNDC Law 153), the adoption of a new investment code, the long period of political stability since 1981 and the reforms and restructuring of the mining sector in Ghana resulted in increased gold production, greater private sector ownership and management, enhanced environmental awareness and community relations. In-house mining has given way to contract mining as most companies in Ghana have contracted out their mining operations to mining and service contractors.