Venezuela lies geographically closer to the equator in South America . Argentina lies way down south. In the same continent, but lets not get them dangerously confused
Can't tell you positively what implications it may have on gold price, but they will very likely not have to pay a premium on the gold. Also, if you look into the few basics of chinese gold market ( SGE)the transparency is much more apparent compared to the London market. In China all gold, mined and import supply, is required to be sold through the Shanghai Exchange, and once bars are withdrawn from the SGE vaults they are not allowed to be re-deposited. These facts are important for our understanding of this market and manipulation is less likely What ends happening we can measure much more effectively the demand side because it will equal to how much gold is withdrawn from the SGE vaults.
It will be the west manipulative paper market versus the east physical bullion market...we shall see.
Interesting story coming out from China
Since the beginning of the year, and perhaps even going back to the end of the 2008 credit crisis, gold and silver markets in both London and the U.S. have seen a massive amount of manipulation by the bullion banks in an effort to protect the dollar and reserve currency at the same time the Federal Reserve began implementing the policies of ZIRP, QE, and direct monetizing of U.S. debt. This of course has led the spot price of gold in the physical, paper, and futures markets to become depressed so much that several global miners no longer are able to make a profit from excavating and refining the precious metals
the days of Western manipulation may be quickly coming to a close as China is currently holding a three day Gold Conference in Beijing, with the primary purpose being the denominating of gold contracts in yuan rather than dollars, and creating a metals market that is absent manipulation and capable of wresting control of price discovery from the Comex and other Western banks that need to control prices to protect the crumbling reserve currency.
This sudden shift in policy by the Chinese to control and perhaps dominate the gold market is being taken seriously by London and U.S. gold cartels that have been the primary keepers of price discovery and fixing for decades. At the same time Shanghai is gaining approval for more bullion banks to expand the capacity of the gold markets in Asia, the U.S. based CME is in negotiations to open their own offices and outlets for gold contracts in Hong Kong which will create a full monetary war between the yuan and the dollar over the power and authority to control gold prices and discovery.
Soros just increased his bear call on SP 500 by monstrous amount, his put options on SPY ETF increased by 605 percent and it is now his largest holding in his portfolio. He also doubled his stake with the oil company in Argentina YPF. A technical gap range of 2.43 to 2.45 has been filled....Still a waiting game for most, and accumulating period for the fortunate.
Ive written about this a few times before .Depending on the objective, exploring, producing, construction, buying or selling they will be plenty of benefits because of the more relaxed gov't regulations Los Azules will have the biggest impact and san jose will benefit as well from increased exploration..good results translates into good market results
Joint venture would make more sense...but imo that wont happen either...the merger will involve a operating mine...need to get to 600k...we will be at 300 with eg2 and gold bar...thats the ticket to robs ultimate goal...he may seem alot of talked but give him a opportunity he will deliver
The market has quietly given us the " bottom " which is immensely important and it is making the sector work more efficiently in many ways.... once the cycle turns, the window of opportunity is open for a short time. Everyone is basically lining up there ducks. Just to speculate, besides EG2 the next big event for MUX will be a M&A once the stock value escalates. The goal is 600K Au EQ/YR.. This will occur sooner then you think...
5,000 seems impossible, including myself mainly because we are living through the panic, emotional up's and down's and all the manipulation. Which makes it very difficult even considering 5,000. But if you blow all the smoke aside it may be in reach if you consider all economic problems that is building up. The non-believers said the same thing back in the 70's, gold went from 35 dollars to 900 dollars. In the a 4 year span it went from 100 to 900.. I think we should all stop slamming McEwen because he may end being right.
Thx AMX, I want to be considered very good at what I do. I read some of your post and I can only wish I could be as moronic as you...Thank you again!
Let me tell you what the real good news is. Since this sector has hit bottom, mux market value has increased 65 percent with two impairment charges of 200 million, Argentina geopolitical headwinds and basically being stagnant and doing nothing....Now imagine what will happen when they go back and actually look at the rock you are speaking of