Demand increases while supply decreases!

Black Swan for Gold? 12,000 S.A. Gold Miners Go on Strike

September 2, 2012 By 9 Comments

Gold nearly touched $1700 Friday on speculation Ben Bernanke and The Fed will soon publicly announce QE3.
While additional QE impacts the price of gold from a demand side standpoint with traders and investors acquiring the asset in order to protect themselves from currency devaluation and debasement, gold’s supply side might have just experienced a black swan event, as 12,000 South African gold miners have followed their platinum miner counter-parts by going on strike from Gold Fields.
Gold Fields is the world’s 4th largest gold mine, and the strike is costing the firm 1,660 ounces of gold a day in lost production according  to Gold Fields’ spokesman Sven Lunsche.

Recall that platinum exploded higher in the aftermath of the S.A. platinum mine spike.  A $1700 handle on gold is imminent, likely shortly after Monday’s Asian session opens.

South Africa remains the world’s 3rd largest gold producer:

In the wake of S. African authorities charging the 274 surviving miners in the deaths of their co-w0rkers, it appears a massive escalation in S.A. mining strikes is at hand.

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