When it comes to making money, Carlos Slim has proved himself to be something of a Midas. He increased his already unimaginable fortune by $8.1bn between July and September this year, lifting himself into a category all of his own on the world’s rich list.
But now the Mexican telecoms billionaire seems to be going for gold in earnest: next year, he plans to open two new gold mines in the northern border state of Chihuahua. The investment is expected to total more than $350m, and the ventures will create 4,000 new jobs. Continue reading »
While central banks around the world consider buying gold to diversify foreign reserve holdings, Taiwan which holds the world’s fourth largest foreign exchange reserves – has no intention of jumping on the gold bandwagon.
Taiwan central bank governor Perng Fai-nan, answering legislators’ questions on Wednesday, said he was not interested in buying gold or selling any of the country’s 474.30 tonnes of gold. Continue reading »
As nervous traders pushed up gold prices during the credit crisis, thousands of unemployed South African men ventured into abandoned mine shafts, risking their lives in search of the increasingly precious metal.
Illegal mining is big business in South Africa – the Institute of Security Studies estimates that gold worth up to R2bn ($290m) was stolen from mines in 2007. By 2008 the industry was worth about R5bn a year, according to the Chamber of Mines. With the price of gold reaching record highs again, criminal syndicates who plunder poorly secured mine shafts in South Africa are continuing to take advantage. Continue reading »
Recent all-time highs have left investors wondering if the price of gold can keep on climbing. While concerns about the falling dollar and euro are big factors driving the price upwards, something more profound is also afoot.
Demand for gold is expanding in emerging markets such as India and China, and if that becomes permanent some are asking if this could shift prices into a higher trading range for good. Continue reading »
Gold frenzy is back in India. With less than a month to go before Diwali, the Hindu festival of light, Indian consumers – the world’s biggest importers of bullion – are stocking up.
Forgotten now are the doubts of the summer, when jewellers told beyondbrics that rising global prices and economic worries were putting off customers. Indian buyers are once again doing their bit to drive world prices higher. Continue reading »
Buffeted by high inflation and fears about the stability of their currency, the Vietnamese are among the highest per capita consumers of gold in the world. But, faced with a large trade deficit and a regular shortage of dollars to buy imports, Vietnam’s central bank has long considered this to be a rather unhealthy appetite.
In 2008, the government tried to ban gold imports and earlier this year, it ordered all gold trading floors to be closed. These restrictions, however, only led to an increase in gold smuggling and a surge in the domestic price of gold, which is running at a premium of about $20 an ounce to global prices, according to Reuters. Now the authorities have changed tack again in an effort to reduce the premium. Continue reading »