Gold begins to shine again

Gold bulls who have watched the yellow metal’s steady rally since the first quarter of 2001 will argue that there is more to its ongoing recovery than mounting fears about a war in Iraq.

Be that as it may, there can be no denying that the growing likelihood of the United States engaging Saddam Hussein helped lift gold to a six-year high of $367 an ounce yesterday. But it should be remembered that the beginnings of its long-haul recovery had nothing to do with the Iraq situation.

Steady progress saw it gain more than 25 per cent last year and this year it has added another five per cent.

Die-hard gold bulls were in on the action early in the recovery phase with share prices leading the bullion price. But those who cut their teeth on dollar strength, the IT boom and who have grown up at the knee of Wall Street spin doctors have yet to overcome the perceptions that the much maligned precious metal no longer had a role to play in world economies.

Now with the US economy faltering, the dollar losing value, and the Dow Jones and the Nasdaq having taken a thrashing, investors are beginning to take a second look at the gold markets.

Russia, China and certain Arab states are now embracing gold for monetary purposes and increased Asian buying has also helped to boost the bullion price.

The present wave of interest may help restore some of the value the ill-advised draft mining charter wiped off South African share prices last year when overseas investors fled in panic.

Because of the volatility of the markets gold’s advance can’t be guaranteed, but for now the shine has returned and it looks set for further gains.

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No longer the best kept secret

For many years, it has been the rather strange boast that the extraordinary splendour and beauty of the Eastern Cape has been the country’s best kept secret as far as tourism is concerned and the province lagged badly behind many other provinces in terms of the number of tourists it attracted.

From the reaction of tourism authorities across the province to the influx of visitors over the summer holidays that is clearly no longer the case. Resorts from one end of the Eastern Cape to the other were packed to capacity.

Certainly the sustained marketing efforts of Eastern Cape Tourism Board CEO Nomkhita Mona and local tourism organisations are starting to bear fruit and they deserve considerable credit for this.

But kudos must also go to the provincial government, particularly roads and public works, which has set about the task of providing access to resorts on the Wild Coast, for example, with a determination that has not been truly appreciated or applauded. That infrastructure has allowed many to enjoy the spectacular and pristine beauty of the Wild Coast, undoubtedly one of this province’s greatest tourist attractions.

One of the huge advantages of tourism industry is that unlike, for example, the motor industry, it is able to have an economic impact across the province, creating thousands of employment opportunities which help provide a way out of the depressing spiral of poverty.