Gold News

Gold output down by 13 percent in South Africa

South African gold output slumped by 13 percent on a year-on-year basis during April, according to new official figures released on Thursday (June 11th).

Statistics South Africa confirmed that the decline in production was more severe than in March, when a 7.6 percent year-on-year drop was recorded.

The gold industry is the country's largest source of income from foreign exports but analysts now believe that the recession could lead to the loss of 300,000 jobs this year.

However, the news will undoubtedly be welcomed by anyone with a Gold Investment as falling supplies naturally lead to increased demand and therefore higher Gold Prices.

South Africa is the world's third-largest producer - after China and the US - but some observers have suggested that its position could be under threat from Australia.

Earlier this week, the Chamber of Mines revealed that gold production in Zimbabwe was 3,576 kg in 2008, representing a decline of 49 per cent from the 2007 figure of 7,017 kg.

According to the body, the slump can be mainly attributed to "difficult macro-economic conditions" for mines in the first nine months of the year and a lack of working capital.

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