South African gold sales policies during the 1980s

Abstract

The gold sales policies of South Africa continued to be a focal point of interest during the period of Dr Gerhard de Kock's leadership of the Reserve Bank from 1980 to 1989, partly because of the dominant position of the Republic as a gold producer even though South African production of the metal declined materially. Although sales policies remained basically conservative they were adapted to changing circumstances during the 1980s, which included the steady decline on balance in the dollar price of gold. In particular, the growth of gold futures and options markets created new opportunities for the marketing of South African gold production. In this article the country's gold sales policies are analysed in the light of contemporary developments in the international gold markets during the 1980s, and the main changes in marketing arrangements are delineated.