Not sure if this was posted...
In closing, one more threat was lobbed in the direction of ‘capitalist Mafia’ gold mining firms this morning. It came from Venezuela’s less-than-affable President Chavez. Taking a page right out of Karl Marx, the Venezuelan leader accused said Mafiosi of exploiting his country’s workers while raping the environment. Mr. Chavez has already nationalized portions of Venezuela’s cement, oil and utilities industries. Now, he has raised the prospect of doing the same with gold mining concessions. Muy macho...
However, before you run out and buy a slew of bars on the expectation that such an act will create supply problems, consider the fact that Mr. Chavez’ country produces…not a whole lot of gold. As of January of last year, we could really only count Crystallex’ roughly quarter million ounces (slated for a 2010 commencement) and Gold Reserve’s 460,000 ounce (with a 2012 commencement date) as output of significant size that might be affected by such a measure. Bear in mind that these are annual production capacities and not current output. Mr. Chavez, on the other hand, evidently, has different feelings about that tonnage of gold. It helps usher in…
…Happy 21st Century Socialism,
Jon Nadler
Senior Analyst
Kitco Bullion Dealers Montreal
