Focus – Gold, not eggs

Here an eggplant is armed for any nonsense. The parties are the first and then many people from one side or another begin to write on the subject.

Now it is the ban on egg exports to Haiti for 15 days, which is a normal measure in many countries when a basic necessity is scarce in local markets.

The problem is not the egg but the gold. This precious metal has been increasing in prices in international markets due to the great demand of many central banks, from Russia, India, China, and other countries in the Middle East, Asia and Africa.

On Friday, January 6, gold was trading at US$1,866 a troy ounce and everything indicates that it will soon surpass the US$2,000 barrier. Other analysts point to US$3,000.

Why does gold go up? “The ‘flight’ of central banks into gold suggests that the geopolitical context is one of distrust, doubt and uncertainty, especially after the US and its allies froze Russia’s dollar reserves”, Adrian Ash, head of research from BullionVault.

Also, many countries want to replace the dollar as a means of payment with China in the lead. In the third quarter of 2022, central banks bought 400 tons of gold. And in the fourth quarter it could reach 600 tons.

It is urgent to resolve the issue of the expansion of Barrick Gold Corporation’s Pueblo Viejo Mine to extend its useful life until 2040 and increase gold production and exports. That will generate, between direct and indirect taxes, an additional US$4 billion in revenue and will maintain the employment of almost 2,500 people.

In addition, the surrounding communities receive significant income that helps the development of the area.

It is also urgent to build the tailings dam (investment US$600 million), necessary for the expansion of the mine whose total investment amounts to US$1,300 million.

While the environmental permit for this project lasts longer than the Tucanos judicial process, the mining sector continues in free fall precisely because of the lower sales of gold and silver.

GoldQuest is another mining company affected by the same reasons.

Between January-September 2022, the contraction of the Mining and Quarrying sector registered -8.5%, the only one with negative figures.

Chickens lay millions of eggs daily, but precious metals have to be dug up. That is the goose that lays the golden eggs.

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