Subscribe for 12 months with recurring billing - $199

Buy 12 months of subscription time - $199


Search Gold Prices
Gold Price
[Most Recent Quotes from]
Our RSS Feed

Gold Updates by Mail

Enter your email address:

Follow Us on Twitter
« Profiting from Europe’s New Gold Rush | Main | China's waning commodities appetite puts miners' fortunes at risk »

Gold miners sues Venezuela

When we see this sort of article it makes us question the wisdom of holding mining stocks these days. Political risk continues to raise its ugly head causing much upheaval and the possible loss of all of the miners investment time and money. Its something that we continue to wrestle and as yet have not come up with an answer other than by gaining some leverage to gold and silver via the options trading route. Time will tell as they say.

Russian-Canadian mining firm Rusoro is joining 20 other companies in seeking compensation from Venezuela through World Bank arbitration, after the Latin American country nationalized its gold mine.

Venezuela's actions "provoked significant losses for the business and its shareholders," declared Andre Papov, Rusoro president and CEO, in a statement seen on the company's website Wednesday.

Rusoro said the nationalization of its gold mine in Bolivar state violated the investment agreement between Canada and Venezuela.

The company added that arbitration was its "sole remedy" after the "apparent unwillingness" of the Venezuelan government to find an amicable solution to the dispute.

Twenty other foreign firms, including US oil giants ExxonMobil and ConocoPhillips, are already suing Venezuela in the World Bank court for nationalizing their assets.

The multi-billion dollar lawsuits prompted Venezuela's leftist firebrand President Hugo Chavez to announce he would pull his country out of the tribunal, a decision expected to become effective next week, though the pending cases would continue.

Last August, Chavez signed a law granting his state at least 55 percent of joint ventures in the gold mining industry, in order "to reinforce national independence, economic independence," he said at the time.

He also said the move was aimed at preventing "mafias" from exploiting Venezuela's natural resources. Wildcat mining makes up 60 percent of local production in the gold sector.

The new law also stipulated that the state would set the royalty rate at 13 percent of the value of the gold extracted by the big mining companies.

Venezuela has the 15th largest gold reserves in the world, with an estimated 365.8 tons, according to the World Gold Council.

Regarding We recently closed a trade involving the S&P which generated a profit of 25.61% and was opened just 8 days ago, the charts and stats have now been updated.

Our trading success rate is 91.00%

91 profitable trades out of 100.

Our model portfolio is up 455.14% since inception

An annualized return of 81.15%

Our annual performance figures are as follows:

2009 We made a profit of 23.89%

2010 We made a profit of 158.66%

2011 We made a profit of 40.95%

In 2011 we outperformed:

S&P by 42%

HUI by 53%

Gold by 31%

Silver by 41%

The 2011 Annual Report by be accessed via this link.

Also many thanks to those of you who have already joined us and for the very kind words that you sent us regarding the service so far, we hope that we can continue to put a smile on your faces.

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. Winners of the GoldDrivers Stock Picking Competition 2007  

If you are new to investment in the precious metals sector then you may wish to subscribe of our FREE newsletters regarding gold stockssilver stocks and uranium stocks, just click on the links and enter your email address. 

PrintView Printer Friendly Version

EmailEmail Article to Friend

Reader Comments

There are no comments for this journal entry. To create a new comment, use the form below.

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>