Jim’s Mailbox

Posted at 2:05 PM (CST) by & filed under Jim's Mailbox.

Dear CIGAs,

Today is no different from yesterday. This thing remains “Out of Control”

Today’s so called new initiatives was not an intervention as it was proposed before as part of the 6 prior interventions.

Equity markets are saying, “We saw that one before.”

Gold is a paper play as part of trying to make today’s speaker look good.

Regards,
Jim

”Life’s tough… it’s even tougher if you’re stupid.”
— John Wayne

Dear Jim,

South African gold output is down 23% on a strike
.
Respectfully yours,
Monty Guild

South African Aug. Gold Output Falls 23% on Strike

Oct. 9 (Bloomberg) — South Africa, the world’s biggest producer of precious metals, said gold production fell 23 percent in August from a year earlier because of an electricity shortage and a protest against power price increases. “There was the Aug. 6 strike by Cosatu that affected mines quite heavily,” Alex Conradie, an economist at the Department of Minerals and Energy, said by telephone from Pretoria today. “The power issues also weren’t there a year ago.” The Congress of South African Trade Unions, known as Cosatu, protested against a 27.5 percent tariff increase by state-owned Eskom Holdings Ltd. to help fund a $44 billion expansion. The utility, which supplies 95 percent of South Africa’s power, started rationing supplies to mines this year because of a shortage of capacity. South Africa’s total mining output declined 6.2 percent and non-gold production fell 3.5 percent, Pretoria-based Statistics South Africa said today on its Web site. Mineral sales jumped 58 percent to 27.52 billion rand ($3.04 billion) in July from a year earlier, it said. Mineral sales data lag production data by a month. South Africa produces more than three-quarters of the world’s platinum and also turns out diamonds, coal, chrome and iron ore. South Africa was the world’s biggest gold producer for more than a century until last year when it was overtaken by China. Ageing ore bodies and safety-related mine stoppages cut 2007 output by 7.4 percent from 2006.