South African Mint Product Hits 25 Year High

The world's largest gold smelting facility, Rand Refinery Ltd. of South Africa increased gold Krugerrand production to a 25 year high as investors have demanded more do to Europe's sovereign debt crisis.

Debra Thomson, Rand Refinery's treasurer stated that last weeks output increased by 50% to 20,000 ounces of blank gold coins for minting.

The euro has decreased 14% against the dollar this year and the fiscal crisis in Greece and other European economies gold prices have reached records in the dollar, euro, British pound, and Swiss francs.

"We're seeing higher demand for gold because of the sovereign-debt crisis in Europe and the depreciation of the euro," said Thomson. "People are looking for gold as a safe haven."

Consumer demand was great enough to create "panic buying," Muenze Oesterreich AG, the Austrian mint that produces the best-selling gold coin in Europe and Japan, said on May 12. Gold Bullion is looking to achieve a 10th annual increase in a row.

Greatest demand is coming from Germany, Thomson said. Chancellor Angela Merkel's coalition government has riled voters over its handling of the European Union's $1 trillion plan to backstop the euro. Merkel's flip-flop on extending aid to Greece has been blamed for a local election setback that cost her power of the upper house of parliament.