You are here
Out of rand crisis, opportunity for world's costliest gold mines
By Kevin Crowley
Monday, December 14, 2015
South African President Jacob Zuma is causing turmoil in financial markets and accidentally throwing a lifeline to his country's struggling gold industry.
Zuma's decision to fire respected Finance Minister Nhlanhla Nene drove the rand to a record low, instantly reducing labor and other costs in the local currency for mining companies, relative to the U.S. dollars they earn by selling gold.
Shares of Harmony Gold Mining Ltd., the highest-cost major miner of the metal, are up 25 percent since Zuma's decision Dec. 9. AngloGold Ashanti Ltd. gained 12 percent and Gold Fields Ltd. 11 percent. A weak rand offers relief to an industry plagued by labor unrest, aging mines, and power shortages. Companies as recently as six months ago were saying they needed to cut costs to survive as they lost money on 35 percent of local production. ...
... For the remainder of the report:
USAGold: Coins and bullion since 1973
USAGold, well known for its Internet site, USAGold.com, offers contemporary bullion coins and bullion-related historic gold coins for delivery to private investors in the United States, Europe, Canada, Australia, and New Zealand. It is one of the oldest and most respected names in the gold industry, with thousands of clients and an approach to investment that emphasizes guidance and individual needs over high-pressure sales tactics. The firm's zero-complaint record at the Better Business Bureau makes it an ideal match for the conservative, long-term investor looking for a reliable contact in the gold business.
Please call 1-800-869-5115x100 and ask for the trading desk, or visit:
USAGold: Great prices, quick delivery -- all the time.
Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:
Or by purchasing a colorful GATA T-shirt:
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit: