PANIC TIME...South Africa's Gold Reserves Are 90% Lower Than Thought (GLD)

This should lead to some very interesting days to come for those holding gold. Gold should move steadily upward. Go Gold!



Scientists: South Africa's Gold Reserves Are 90% Lower Than Thought (GLD)
Vince Veneziani|Nov. 18, 2009, 10:49 AM | 1,738 |comment4
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Tags: Markets, Gold, Commodities

mining gold
GLD Nov 19 2009, 06:40 PM EST
112.30 Change % Change
+0.05 +0.04%
Peak gold believers will be pleased to learn that South Africa's gold reserves are dwindling.

About 95% of the reserves have been unearthed and discovered already in Witwatersrand, the biggest gold field in the world, meaning gold is probably going to head higher as investors freak out over limited supply:

Mineweb: Gold production from the Witwatersrand, the biggest known gold field in the world, peaked at around 1,000 tonnes in 1970 and has declined ever since. Hartnady says that while initially (1970-1975) the decline was "quite precipitous", it has been interrupted by only short periods of slight trend reversal (1982-1984 and 1992-1993).

Leon Esterhuizen, a London-based specialist analyst at RBC Capital Markets, has reacted to the research by saying that "South African gold is dying -- this is not new news", but adds "that it may be dying faster than we currently believe is novel". On the levels of reserves, Hartnady finds that the South African "residual gold reserve" after production through 2007 is only 2 948 tonnes, a little less than three times the 1970 production figure, and much less than 10% of the officially cited reserve.

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[link to www.businessinsider.com]