Changing Times...... GoldLook at these headlines:
Gold Miners Ordered to Sell 20% of Refined Bullion to Ghana
It doesnt look like nothing special but it is. Gold must be sold at the official currency rates. It all depends what the official currency rate against USD, or gold.
Most marginal. or third world countries have two different currency rates, one official inflated rate, and a real market rate. If you want to,buy equipment from outside the country, you would have to buy USD"s to buy the equipment at the real market rate. Most of these countries have 2 differeent rates of exchange.
With the new policy, 20% of the gold, mined and refined would have to be sold at the government, or official rate, or inflated rate.
All this is going to narrow the profit margins of the mining companies, ok, for the country, but hard on the investors.
As an example, when I was in Egypt in 1974, we could get between 70 to 75 Egyptian pounds for 100USD on the market, but going to the banks, you would only get 30 to 35 Egyptian pounds per 100USD