Physical Gold Responds to the Latest News in the South African Strikes

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As yet another company suffers from the impact of weeks of industrial action, Physical Gold reflects on how the wild cat strikes in South Africa have affected the industry.

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Physical Gold take an active interest in all updates and developments within the industry and were naturally intrigued by this news.

AngloGold Ashanti, the world’s third largest producer of gold continues to be one of the mining houses most affected by the strikes, and yesterday announced it was cutting its capital expenditure by £200 this year. Although it recently emerged that nearly all the 15,000 miners had returned to work, following news that AngloGold and other gold companies had agreed to wage increases, operations have been suspended at its Mpoeneng mine this week after workers undertook sit in protests.

The news comes after bosses at the world’s fourth bullion producer, Gold Fields, have refused to negotiate with strikers over their wage demands, leading to a three week long stoppage at the KDC West Mine.    

As one of the UK’s leading gold dealers, specialising in bullion bars and coins, Physical Gold take an active interest in all updates and developments within the industry and were naturally intrigued by this news.

“Whilst it seemed like the unsettlement had reached a still point, with strikers returning to work, there appears to be further unrest. If the situation reaches new levels, and the amount of gold being produced slows down, this could lead to a possible increase in gold value.”

Meanwhile it appears there has been a global push by miners into other parts of Africa, one of the world’s most underexplored destinations despite having plenty of natural resources.

Physical Gold Ltd is a leading UK gold dealer, helping investors diversify their portfolios with innovative investment solutions. Renowned for their ground breaking products such as the Sipp gold and Gold Accumulation Account, the firm specialise in providing customers with tailored assistance in sourcing the best gold for their personal requirements. Based in London, the team are BNTA accredited and have an unrivalled knowledge of the gold market as well as an exceptional understanding of the general financial markets.

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Dan Fisher
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