Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
While gold gained for a third straight session Friday, the metal bulls don’t have other reasons to smile, as the yellow metal has lost about 28% its value this year and looks certain to record its worst performance in 30 years.
Gold futures for February delivery were up in New York 0.2% to $1,215.10 an ounce at 9:55 am ET. Prices improved 1.3% in the previous two sessions, but bullion is still set to drop for the fourth consecutive month.
To add to the bad news, analysts are predicting that a fast rebound seems unlikely. Investment bank UBS, for instance, expects the price of the metal to remain at or below current levels for the next few years, ending at $1,210 in 2017
4 Comments
Chris
That’s pretty grim outlook. I’m trying to get a job back in mining maintenance and this is not an encouraging feeling I’m getting.
onemansopinion
If you are a journeyman you should not have a problem. BC mines are short of pretty much every journeyman category. Go to the MABC website and start sending out resumes.
2ndOrion
More Bargains? So Nice!
Doubtful
What else could you expect? As an investment gold is dead. Throughout QE it has failed to perform as was expected. I fear the global community has realised the metal has no physical use and therefore no value. If I were a miner I would find another job, soon!