PHLX Gold/Silver Sector (XAU)

[long-gone]

To:John Barendrecht who wrote (151)
From: Bear Wednesday, Jun 25, 1997 12:25 AM
Respond to of 79915

Does anybody know whether South African gold mines are government-subsidized? I believe their average cost of producing gold is considerably higher than the price of gold. Therefore they are either losing money hand over fist or are government-subsidized. If they are, how much does the S.A. govt
spend on these subsidies and what are the prospects it will continue
to subsidize, particularly if gold goes lower? Furthermore, how much
more does this bear market in gold have to go on for a lot of mines to
close due to losing money?
Bear