Sobering Production Note From South Africa

At least, for vintage goldbugs. South Africa's traditionally been the country with the low-cost producers. Not any more, according to this Business Report Online article. It says that notional cost expenditures - which include capital as well as cash costs for production - were $800/oz in 2008.

That figure makes South African companies high-cost producers - perhaps the marginal producers of the world. This fact is one for peak-gold believers, as it supports the overall thesis. So does the estimate of national cost expenditures rising to $1,400/oz by 2015.