iShares MSCI South Africa Index (EZA) is the top performing ETF for the past three months and one of the best in the last month. This ETF is heavily weighted in South African mining companies and has flourished with gold reaching above $550 an ounce recently.

In a November 2005 article in Forbes, Carlton Delfeld points out that "central banks have been net sellers of gold over the past 20 years.
Gold accounts for about 9% of the $4.4 trillion in world central bank
foreign exchange and gold reserve, down from 15% in early 2000. But
some central banks are now going the other way. For example, the
Russian central bank wants to increase gold’s share of its reserve from
5% to 10%.

Jewelry demand for gold is also picking up,
especially in China and India. Global investors are also using gold as
a hedge for a global recession and potential decline in value of the
U.S. dollar or the euro.

On the supply side, production of gold has
been relatively flat for the last five to seven years and does not
appear to be turning around due to maturing mines and higher extraction

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.