Post by
petersburggray on Mar 26, 2021 6:19am
Risk of resource nationalism
in Mexico is not appreciated or discounted by market at this time imo. I agree with ECSINVESTOR that big companies are watching Cosala situation closely and we see by the actions of those companies closest to what is going on (FR, always a pure silver mexico focused miner buying gold mine in nevada for example) that there is an expectation that resource nationalism could tick up in mexico with very negative consequences for mining companies. The higher gold and silver price rise the greater the risks of resource nationalism due to widespread poverty and feelings that mining companies are getting rich on back of poor, taking gold and silver in ground without just compensation to public, gold and silver that belong to people per mexican constitution. Revoking mining concessions and other punative actions against mining companies is a vote getter for AMLO the communist and such actions fit his world view. Like Trump, AMLO also had a presidential election stolen from him through vote fraud so going after his political enemies, the domestic monied mining interests that supported stealing his election win, like those behind Fresnillo for example are no doubt high on AMLO list for settling old scores. On the bright side AMLO policies, echoing those of 1970s Peru, no doubt cause a collapse in mexican gold and silver production meaning LBMA/comex could have much less metal to meet obligations which could help light a fire under silver and gold prices.