Gold nearly touched $1700 Friday on speculation Ben Bernanke and The Fed will soon publicly announce QE3.
While additional QE impacts the price of gold from a demand side standpoint with traders and investors acquiring the asset in order to protect themselves from currency devaluation and debasement, gold’s supply side might have just experienced a black swan event, as 12,000 South African gold miners have followed their platinum miner counter-parts by going on strike from Gold Fields.
Gold Fields is the world’s 4th largest gold mine, and the strike is costing the firm 1,660 ounces of gold a day in lost production according to Gold Fields’ spokesman Sven Lunsche.
Recall that platinum exploded higher in the aftermath of the S.A. platinum mine spike. A $1700 handle on gold is imminent, likely shortly after Monday’s Asian session opens.
South Africa remains the world’s 3rd largest gold producer:
In the wake of S. African authorities charging the 274 surviving miners in the deaths of their co-w0rkers, it appears a massive escalation in S.A. mining strikes is at hand.
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