Gold production falls in South Africa, although other commodities do better
In terms of volume, South African gold production has fallen by 14.4 percent in October. Mineral production fared better for the country, as overall it gained 3.5 percent over October 2007.
That will harm the country as gold futures and gold commodity prices will continue to go up over the next several years, especially as the economic conditions continue to deterioriate.
Gold futures trading will be one of the few sectors that not only provide safety for commodities investing, but for all investors as well. The gold commodity price will provide good returns along with a haven, making gold as a commodity a surety to continue to rise in value.
Take out gold and mineral production rose by 6.5 percent, according to the South African Web site.
Much of the decline is attributed to the ongoing electric power grid, which state-owned Eskom seemingly is not able to fix.
At this time Eskom has cut back on power supply to mines to about 90 to 95 percent.
Numerous factors continue to hamper consistent commodity success in the country. If they can deal with infrastructure and safety problems more efficiently, the country would thrive, especially in metals.
1 comment:
Although demand for gold is on the rise due to the increasing valuation of gold, the gold production has been decreasing. Assuming demand for gold keeps increasing, if gold production does not pick up, this could keep the supply of gold low which might push the price of gold even higher.
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