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Aside from the MASSIVELY PM-BULLISH factor of limitless Central bank MONEY PRINTING, I have continually harped on the fact evidence points to gold and silver marginal costs of production approaching $1,500/oz and $30/oz, respectively…

GFMS Says 2012 Gold Mining Cash Costs Increased 17% to Most Ever

…thus, preventing production from meaningfully increasing…

Gold Production is Declining

…if at all

Silver Production in US Declines 8.7% in 2011

Naked shorting of hapless mining shares has further reduced miners’ ability to arrest inexorable production declines and counter surging costs; and I strongly urge you to enhance the deleterious “unintended consequences” of this nefarious Cartel scheme by “SELLING MINERS, and DESTROYING THE CARTEL”…

Gold companies looking to forget 2012

In many cases, this is already occurring; but NO PLACE more than South Africa…

South Africa mining to shed jobs in troubled times

…where gold production just hit a 90-year low…

South African Gold Production Dives Again To 90-Year Lows

…down 50% since the PM bull commenced in 2000…
Source: Seeking Alpha

For decades, South Africa was the undisputed gold mining KING; cumulatively, responsible for 50% of ALL gold ever mined.  However, just as the energy industry witnessed ten years ago…
Source: ihs.com

…the “low hanging fruit” has been picked clean, yielding surging mining costs…

South Africa faces mining dilemma as costs soar

particularly in South Africa – where most remaining reserves are way below the surface – in some cases, by up to 2½ miles

The Decline of South African Gold Mining

Moreover, the nation faces horrific electricity shortages…

Adding to mining costs, Eskom Holdings Ltd., which supplies about 95 percent of South Africa’s power, is seeking 16 percent average annual tariff increases until 2018 to fund expansion.

…and chronic labor issues…

S.Africa’s Zuma equates mine closure plans with “blackmail”

..prompting MASSIVE layoffs…

unemployment

financial losses

Amplats makes first annual loss, risks more labor strife

…and divestment

Gold Fields spin-off a vote on S.Africa mining industry

Thus, it should be no surprise that the historical bulwark of global gold production has been driven into obscurity – NEVER to be replaced…

Ironically, the U.S. Geological Service (USGS) – in its last such report in 2009 – still lists South Africa has holding more than 30% of the world’s known reserve base…

…while the world’s current leading producer – China – doesn’t even make the list…

List of countries by gold production

“THE RISE AND FALL OF SOUTH AFRICAN MINING” should serve as a lesson to those believing “peak gold” is not possible; let alone, “PEAK SILVER.”  Artificial price suppression is taking its toll on PM production in general; however, natural decline is equally debilitating; particularly given the veritable EXPLOSION in PHYSICAL demand…

China’s Gold Imports from Hong Kong Double to New Record In 2012

Don’t be surprised to see similar articles about other major producers – like the U.S. – in short order; not to mention, the inevitable price surges that accompany such MASSIVELY bullish supply/demand fundamentals.

PROTECT YOURSELF, and do it NOW!

Call Miles Franklin at 800-822-8080, and talk to one of our brokers.  Through industry-leading customer service and competitive pricing, we aim to EARN your business.