gold price today South Africa

Article Index

What South Africa's Mining Turmoil Means for Investing in Gold

Gold prices recently have risen due to global central bank stimulus measures, but the true movement in the market stems from much more than QE3.

Precious metals investors no doubt have seen the recent headlines coming out of South Africa. Violent strikes (resulting in dozens of deaths) and work stoppages have plagued the platinum industry there in the past few months.

The causes of the labor unrest include poor wages and unsafe working conditions. There has also been a tussle for power between two warring labor unions - the Nation Union of Mineworkers and the far more militant Association of Mineworkers and Construction Union.

The result of all this turmoil is quite obvious for the global platinum market. The majority of the world's platinum, roughly 80%, comes from South Africa. Not to mention that 90% of that production comes from a limited area, the Western Bushveld region of the country.

But here's where it gets interesting, especially for those investing in gold.

Read More…