Jan. 25 (Bloomberg) -- AngloGold Ashanti Ltd. and Gold Fields Ltd. and Anglo Platinum Ltd. shut their South African mines as the nation's power shortage worsened, causing precious metal prices to jump and a slump in their share prices.
_________________ "Against stupidity the gods themselves contend in vain."
-Friedrich von Schiller
"What I try, may not work. It may be ineffective. It might even turn out in the pages of history to be the exact wrong thing to do, but I'm going to try to do what I c
Joined: Mar 12, 2007 Posts: 890 Location: As close as I can get to the beginning of the pipe.
Posted: Fri Jan 25, 2008 10:00 am Post subject: Re: Energy shortage = Less Gold
From the same Bloomberg article-Rossingh
Quote:
"Gold also rose as some investors bought the metal as a hedge against inflation stoked by higher oil prices, Ross Norman, director of London-based TheBullionDesk.com and a former bullion trader, said by telephone.
Crude Oil Gains
Crude oil for March delivery rose as much as $1.03, or 1.2 percent, to $90.44 a barrel on the New York Mercantile Exchange, and traded at $90.09 as of 11:39 a.m. in London. Futures reached a record $100.09 a barrel on Jan. 3.
Speculation that tax rebates for households and businesses planned by President George W. Bush and Congress would allow the U.S. to skirt recession outweighed the impact of larger-than- expected increase in crude and gasoline inventories reported by the Energy Department yesterday.
``Primary upside risk will come from further recovery in equity values if White House stimulants take effect along with a serious bout of cold weather hitting the U.S.,'' said Robert Laughlin, a senior broker at MF Global Ltd. in London."
This is serious confirmation of the link between metals and oil scarcity (and inflation, for that matter). I was looking for this. _________________ "For my part, whatever anguish of spirit it may cost, I am willing to know the whole truth; to know the worst and provide for it." --Patrick Henry
Joined: Mar 12, 2007 Posts: 890 Location: As close as I can get to the beginning of the pipe.
Posted: Fri Jan 25, 2008 10:07 am Post subject: Re: Energy shortage = Less Gold
Quote:
"The government was also considering emergency measures to compel South African mines to supply the state utility Eskom with more and better coal rather than exporting it.
''If they don't give us the coal, they don't get the electricity,'' said Erwin.
Minister Sonjica said the government is studying countries like Brazil and Cuba that have rationed energy. South Africa is now considering quotas and fines for exceeding allotted energy use, Sonjica said.
Sonjica also said the government hoped that a million solar water heaters would be installed in the next three years and that measures were being considered to oblige hotels, hospitals and other institutions to use solar power for water heating.
Traffic lights would be switched to solar power. Cape Town has pioneered a successful experiment, helping to minimize traffic snarlups now being caused by signal failure.
Electricity prices, which are expected to rise 14 percent this year, will likely continue to rise by a similar margin for the foreseeable future, said Erwin "
S. Africa Declares Energy Emergency _________________ "For my part, whatever anguish of spirit it may cost, I am willing to know the whole truth; to know the worst and provide for it." --Patrick Henry
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