A recent paper in the South African Journal of Science has found that the Witwatersrand goldfields of South Africa are 95% exhausted. Production rates are projected to fall below 100 tonnes a year within the next ten years. Coupled with our earlier report on the problems facing Barrick Gold of Canada, gold may have more price support than every before, at least in terms of supply and demand. Did you buy gold yet? The metal is poised to make colossal gains.

Many reports from South Africa have overstated the reserve supply by as much as 200%. This new report states that South Africa is not the first largest holder of gold reserves, as is commonly stated, but actually the fourth, after Australia, Peru and Russia. The findings have caused one reporter to place the South African gold production on “deathwatch.” Wiwatersrand is the largest gold field in the world, and at its peak in 1970 was producing 1,000 tonnes a year.

While governments around the world have conducted stimulus plans for their economies, including bailing out banks, it is still extremely difficult to get loans and raise capital for a number of companies. The latest victim is mining and metals companies, who are burdened with a “wall of debt” according to a report from Ernst and Young released this week. The inability to raise money is severely restricting the operations of these companies, which will also limit the supply of commodities, and could drive up the price of gold and other metals.

Capital is necessary to mining companies because of the long lead time required to actualize gains. It takes about 10 years after a body of ore is located before actual production of gold occurs, as mapping and permitting are time-intensive processes.

Scrooge McDuck - Gold Investor

Are you thinking about investing in gold. Great! But STOP and don’t go any further until you read our top 10 gold coins investment questions. We’ve answered all of the most important questions you need to consider before investing in gold, gold bullion or gold coins. If you have any more questions please comment below!

• #1 – You hear gold is a good “hedge” or “insurance” what does this mean?
• #2 – What type or kind of gold should you buy?
• #3 – When should you buy?
• #4 – Shouldn’t you just wait to buy gold, when it becomes necessary?
• #5 –  How much should gold should you own?
• #6 – What is the typical gold investor like?
• #7 – Who or where should you buy gold from?
• #8 – If the time comes to sell, where do you sell your gold?
• #9 – What is the biggest mistake gold investors make?
• #10 – Should you invest in gold stocks?

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