• 3 minutes Biden Seeks $2 Trillion Clean Energy And Infrastructure Spending Boost
  • 5 minutes While U.S. Pipelines Are Under Siege, China Streamlines Its Oil and Gas Network
  • 8 minutes Gazprom fails to exempt Nord Stream-2 from EU market rules
  • 32 mins China wields coronavirus to nationalize American-owned carmaker
  • 42 mins Open letter from Politico about US-russian relations
  • 2 days Trumpist lies about coronavirus too bad for Facebook - BANNED!
  • 8 hours Renewables Overtake Coal, But Lag Far Behind Oil And Natural Gas
  • 3 hours US will pay for companies to bring supply chains home from China: Kudlow - COVID-19 has highlighted the problem of relying too heavily on one country for production
  • 2 days China's impending economic meltdown
  • 2 days Why Oil could hit $100
  • 1 day Liquid Air Battery
  • 1 day What the heroin industry can teach us about solar power (BBC)
  • 2 days Rational analysis of CV19 from Harvard Medical School
  • 2 days The Truth about Chinese and Indian Engineering
  • 2 days Brent above $45. Holding breath for $50??
  • 2 days Pompeo upsets China; oil & gas prices to fall
  • 3 days The World is Facing a Solar Panel Waste Problem
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

This Is Good News For South American Gold Miners

Interesting reports emerging this week from the world’s largest gold-consuming nation: India.

Where it appears buyers are increasingly looking to a new part of the world to secure bullion supply.

That new supply source is South America. Where officials with MMTC, India’s largest public metals traders, said over the weekend that Indian gold buyers are increasingly venturing to buy their gold.

Local press in India quoted senior management from MMTC as saying that India’s gold buyers are specifically going after unrefined “dore” gold from countries like Ecuador, Peru, Bolivia, Guyana, Colombia, Honduras and Nicaragua. In order to benefit from better tax rates. Related: Was Iran’s Claim About Ramping Up Oil Production Just Hype?

That’s because unrefined gold like South America’s dore is subject to lower import taxes in India. With such shipments receiving only 8 percent duty, as opposed to 10 percent for refined gold.

By importing dore and then refining it in India, sellers get a significant break on taxes. Which it appears is prompting rising demand in several parts of South America.

News sources quoted Ecuador’s ambassador to India, Mentor Villagomez, as saying, “For the first time the Central Bank of Ecuador shows export of gold to India for 2015.” And Bolivia’s ambassador, Jorge Cardenas Robles, also noted that his country has begun exporting gold to Indian buyers. Related:Potentially Worth Trillions, But Is Aramco A ‘Good Deal’ For Investors?

Beyond those two nations, reports also suggested that dore imports to India from Peru have been rising, after beginning back in 2012. Showing that demand for South American gold seems to be growing across the board in this key market.

Interestingly, this trend also appears to be prompting interest from India’s mining companies in picking up South American gold projects.

Reports noted that three unnamed Indian investors “have decided to invest in gold mines in Peru.” And Bolivian officials said that a delegation of Indian gold miners is expected to visit the country soon.

All of which is great news for South America’s gold sector. Watch for investments from Indian mining firms in the local bullion sector here.

Here’s to going abroad

By Dave Forest

More Top Reads From Oilprice.com:

 


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News