Since 1886 South Africa has been the Gold Producing Mecca of the world. From that year forward the southern-tip African country (about the combined size of the States of Texas, Arizona and New Mexico - or about five times the size of Britain) has literally dominated the global gold scene.

At its peak production in 1970 South Africa contributed 79% of the world's annual supply of the noble yellow. Its dominant position has waned in the last 27 years - although it is still Numero Uno in total gold production, followed by the North-America and a distant third Australia. Today, South African gold mines supply about 25% of the world's yearly production. However, its diminished production dominance is primarily due to vast gold discoveries primarily in North-America and Australia. Nonetheless, South Africa continues to rule unchallenged in the in more important category of gold reserves. Moreover, a recent manpower reduction and rationalization drive has resulted in major cost reductions throughout the South African industry. Average costs after capital expenditure are now lower than North-American mines. Despite having hedged their production at much lower prices than North-American mines, South Africans are now reporting good profits even at low prevailing gold prices.

    

Subsequent to closure of the gold window in 1971 by former U.S. president, Richard Nixon, many international investors became millionaires by speculating in the volatile Johannesburg Gold Stocks Exchange (JSE). When bullion was rising, South African gold stocks soared well-beyond reasonable expectations. And as might be expected, when the shiny metal's cyclic trend was heading down, South African gold stocks prices understandably fell with a vengeance. Indeed they are very volatile.

Testament to its price volatility was JSE roller coaster ride since late 1992. The JSE All-Gold Index rose more than 230% in the 1993-94 gold bull market. Subsequently, it plummeted about 73% from its peak during the ensuing bear market, reaching its nadir at approximately 680 this past March. Demonstrating resiliency from this year's low the JSE All-Gold Index is UP about 60%! Consequently, it behooves veteran market students to remember that ALL classes of securities are cyclic.
The Bear is Dead, Long Live the Bull.

All world gold stock indices have RECENTLY penetrated upside their 200-day Moving Averages - thus heralding the new Gold Stock Bull Market. If history is prologue - and bullion continues its forward thrust - the South African golds are again out-shining their counter-parts across the 'Big-Pond.'

Our South African section is designed to achieve the following: To make it much easier to invest in South African precious metals stocks; To keep the international investment world abreast of news and developments - which might affect the value of those securities.

Poignantly apropos are the sage words of one of the 20th Century's most brilliant minds, Dr. Milton Friedman, Nobel Laureate in Economics:

"We learn from history that we do not learn from history."

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