Gold Surge After Mines Close

Submitted by Share Trading on 28 January, 2008 - 09:03

Gold and platinum prices have surged following mine closures in South Africa, a leading producer of the metals. South Africa is second to China in Global gold production and is the top producer for platinum. AngloGold, Harmony and Gold Fields suspended all their mining operations following a national electricity emergency. Mining operations suspensions follow fears of power interruptions would trap miners underground. Mine equipment problems, accidents and maintenance have contributed to a decline in production. Gold prices reached $US913.70 last Friday compared to the recent record of $US914.30 on January 14. However gold would have to rise to $1465 to top the 1980 record in inflation-adjusted terms.

As gold prices surge it is wise to reflect that gold has always been seen as a safe haven during times of rising inflation and economic uncertainty.

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