South Africa is facing a surge in rhino poaching driven by the high and rising price of rhino horn, which benefits criminals but not landholders or conservation agencies. It is estimated that illegal traders earned $5000/kg of rhino horn in 2009, rising to $10 000/kg in 2010 and $20 000/kg by the end of 2011, or $60 000 – $80 000 for each animal poached. Rhino conservation in South Africa has historically been hugely successful. From fewer than 100 rhinos in 1910, there are now 19 000 white rhinos and 2000 black rhinos, of which 4500 occur on private land. The income from live rhino sales has provided significant income to South African National Parks and provided 74.9% of KwaZulu-Natal's parks budget between 2008 and 2011. But rhinos now face the strange paradox that they are so valuable that the private sector is questioning whether it still wants them. At issue are the economic consequences of traditional conservation policy, and the extraordinary ways that these policies twist economic signals.