Gold’s surge echoes in Joburg’s oldest pubs

GOLD is back in the spotlight. This week the yellow metal surged past the $3 500 an ounce barrier, hitting an all-time high of $3 578.50 before easing back on profit-taking ahead of key US economic data.

- NICOLA MAWSON

For Johannesburg, gold is more than a commodity price on a trading screen. It is the foundation on which the city was built in the late 1800s, when fortune seekers rushed to the Reef and a shanty town grew into a financial hub.

Mining towns such as Pilgrims Rest and Barberton, now heritage attractions, still allow tourists to pan for alluvial gold. There's even an underground pub at Gold Reef City.

Dr Azar Jammine, director and chief economist at Econometrix, has said the surging price carries a “psychological” effect that continues to benefit local miners, with share prices tracking higher.

Andre Cilliers, currency strategist at TreasuryONE, added that the market is taking a breather, but sentiment remains strong.