South African Strikes Halt 39% of Nation’s Gold Output

When some South African platinum mine workers went on strike, I predicted other platinum mine workers would follow suit, shutting down the mines.  I also predicted the strikes would spread to gold mines.  Both predictions materialized, and while some of the platinum mines have returned to operation, it is the gold mines that are now shutting down.  This has been another catalyst for higher gold prices.

http://www.bloomberg.com/news/2012-09-26/anglogold-operations-halted-in-south-africa-as-strikes-spread.html

39% Of South African Gold Production Is Now Offline

As predicted, the worker strikes in South African platinum mines spread to other platinum mines--and gold mines.  And as predicted, said commodity market prices drifted lower, even while imminent supply constraints intuitively infer higher prices.  Marginally economic mines have been shut down due to artificially suppressed prices, further dampening supply.

Demand for precious metals is soaring, but the supply fundamentals may be the driver for higher prices going forward.

http://www.zerohedge.com/news/2012-09-26/39-south-african-gold-production-now-offline

South African Gold Production Dives Again To 90 Year Lows

http://www.goldcore.com/goldcore_blog/south-african-gold-production-dives-again-90-year-lows