LEFT TURN
The future of mining in South American countries looks bleak. Leftist governments have won control of important mining jurisdictions. This includes Chile, Peru, Argentina and the number one silver producer Mexico. Countries like Bolivia, Venezuela and Ecuador are run by communists.
A few years ago, Venezuela expropriated its biggest and most promising gold mine which subsequently shut down. Collectivists don’t know how to produce, but they do know how to steal. Chile recently nationalized its lithium mines, which are the second largest producers of lithium.
All these countries are making noises about increased taxes and increased regulation of mining. This intervention reduces new capital investment in mining ventures. Gold and silver production will be cut if this trend continues. That’s one more bullish factor that will eventually impact the price of these metals.
