HAMMERED DOWN
Gold has given up on responding to bad news and opted instead to allow itself to become the bad news, from which it used to provide a protective hedge. When the dollar started to outdo it, it was hammered down into the hitherto unthinkable $1 300/oz band, with dire consequences for the South African economy. South African Reserve Bank governor Gill Marcus has made it clear that she does not like what she sees. A 52-week summary of mining company shares shows Harmony Gold down 46%, AngloGold Ashanti down 37%, Gold Fields down 30%. Workers who hang on to their jobs at the upcoming wage talks will be the lucky ones.
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