RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Things are going from bad to worse in MexicoAgreed, the populace it it chooses to go down a path that has less than desirable consequences would likely come to their senses and revert back onto a path of sensibility.
Anyways, I was listening to a podcast yesterday from one of the metals analysts that I follow and he was discussing Disovery Silver. He found it hard to believe that this project will not get permitted. He said it was located in a very mining-friendly jurisdiction. This led me to start thinking about here in the states what occurs when states are in conflict with the federal government. A couple of areas where there are disagreement would be marijuana and illegal immigration. We all know these two are prohibited at the federal level, yet many states either have laws that allow marijuana and harbor "sanctuary cities". I would bet there are other countries whereby you see this same sort of conflict between the federal and localities. Officially something is banned, but the ban is not really enforced.
Let's say some sort of open pit mining ban is passed at the federal level in Mexico but certain states or localities choose to ignore the ban. Would Mexico risk some sort of low-level civil war to enforce a ban which is wildly unpopular? Short of a country that has gone full command economy (communist) I find it difficult to believe that a government could selectively choose which industries may or may not participate in the economy, especially if these industries have formed the backbone of the country's economy for hundreds of years.
I understand many shy away from the risk, but my gut tells me a full ban, which would also be strictly enforced, is not a very likely outcome. Seems to be more pandering to a segment of one of the political parties than the mainstream view of the average constituent.
My two cents worth, each one has to do their own research and invest according to their own level of risk appetite. No risk = no reward. This is a calculated risk and the world will need ever more silver as we progress into the future. Mexico will not want to be left out of the 21st century is my guess.