This comes at a time when gold production is steady at best. South Africa produced 296.3 tons of gold in 2005, a figure last seen in 1923. in 2004 production was 342 tons. South Africa is the biggest gold producer.
GRAPH: Eurozone central banks have been feeding more bullion into the rising market.
While gold shows a solid performance in 2006, silver zooms away and has been nervously oscillating between $10.10 and $10.20 after reaching $10.30 last week. The upcoming silver ETF solidly underpins silver below $10. Buying the lows can become very rewarding.