Gold is Good for Guyana – production update – video

Gold is Good for Guyana

(Capitol News – 22nd November 2012) The Chairman of the Guyana Gold Board, Dr. Gobind Ganga, feels that it may not be necessary for the country to hold a lot of its own reserves in Gold at the Central Bank, simply because the country is a gold producing one. A prominent Gold trader in the country, Nazar Mohammed, had hinted in two letters to the press recently, that because of current financial rumblings worldwide and more so in the United States, small states like Guyana should hold significant gold reserves.

Dr. Ganga says, while he does not want to be drawn into a discussion with some persons in the private sector on the worth of holding gold, the Gold Board by its very operations has a gold reserve. The Gold Board Chairman said that Guyana earned around 517 Million US dollars from Gold exports. He noted that once the price is stable, and the miners and dealers continue to sell through the Gold Board, the country will have significant reserves daily in gold.  

However the Chairman cautioned that it may not be necessary and can be financially risky if the Board started to speculate on the fluctuating prices of gold. While the gold price has been climbing steadily, the Gold Board operates based on the London morning and afternoon fix. The country earns nearly seven percent royalty and taxes from Gold sales. The Guyana Gold and Diamond Miners Association has noted that so far for this year, the country has surpassed last year’s target of 350,000 ounces of gold. At current world market prices, that is over half a billion US dollars in sales to the Guyana Gold Board or licensed traders.

There is also the contention that some of Guyana’s gold may be smuggled out of the country and sold elsewhere thus denying the Treasury here of Royalties and Taxes.

The Gold traders locally and internationally have pointed to the economic conditions in the US and some parts of Europe, that can result in recession. When this happens, the traders contend, gold will swing into full gear. The dealers stated that price of gold shows the market has been bullish for years, pushing the price of gold up four-fold over the past ten years.

Owning raw gold or silver and gold stocks will bring real wealth. Gold producing countries like Guyana also stand to progress tremendously and will rapidly boost its economy as a result of this reality according to one prominent trader.

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  • Cyril balkaran  On 11/23/2012 at 8:20 am

    Holding significant gold Reserves in the Guyana Central Bank will augment our Financial and economic Stability in an era of Economic uncertainity. Mr Mohammed is correct and the chairman should also think about his own views. If you sell all your gold then you are left with paper in your hands and no Gold. Every country need reserves and Gold is the way to go. The Chairman should find out how our gold reaches Suriname, Brazil and Venezuela without passing through the official systems. Have our monitoring systems gone defunct. Mr. Chairman we need all our Gold in Guyana. Control the number of alien liscences granted for exploration of the Gold Reserves under your control!

  • Shacko  On 11/23/2012 at 12:35 pm

    In addition to holding gold in reserve, the Guyana government should purchase gold commodities options on gold to cover possible fluctuations in the price of gold. GOG should also do the same for commodities that are imported such as fuel, wheat, etc

  • de castro  On 11/26/2012 at 6:03 pm

    sorry beg to differ here…

    The markets are not for TAXPAYERS money to be used “spectulating” in…
    it should be left to the “marketeers” …private speculators …
    UK s BOE holds no reserve of “gold” …stockpiling “gold” or even “commodities””
    is not the way forward…you should only “print” money (quantitive easing)
    as it is known in markets if you have some tangible assets to back it up…
    or markets accept your credability…confidence in your currency…
    in markets “bonds” are sold to raise money (paper money)
    the market buys these which they hold as security….
    at present UK bonds pay 1.37% interest over 10 years…
    GERMANY its even less 1.35% ….not sure about switzerland or usa.
    BOE interest rates has been .5% for the past 3 years…

    I am no economist but stockpiling or hoarding is used in the markets to create bubbles and the bubbles do burst from time to time …2008 many bubbles burst all at the same time … lets learn from that….dont gamble especially with
    taxpayers money. Only recently one rouge traders was sentanced to 7 years in jail for loosing 2 billion dollars of UBS (united bank of switzerland) money…

    GUYANA is a dot in world markets and to suggest they enter the global
    arena is absurb …even more absurb with TAXPAYERS money.

    I have suggested in the past that the GUYANA DOLLAR would be best aligned to one of its neighbours ….not USD …REAL or whatever…or to the country it has the greatest trade weighed index….in simple language the country it trades the most with….it is the USA so be it.
    When a currency like the unknown GUYANA dollar is aligned to a major market currency if that countries currency gains GUYANA gains and if it looses value so does the guyana dollar…..the UK has the most valueable currency on the planet the POUND yet it is a floating currency…in other words the markets determine its value…the markets are the powerhouse of world ERM s

    when i left GUYANA the first time the guyana dollar was 4.80 to the pound
    today it is 316 to the pound…imagine if 40 years ago the Guyana dollar was
    still aligned to the pound…..hindsight teaches fools…

    is GUYDLR a floating currency or is it aligned to USD ?
    I know UK s pound is a floating currency but not sure of GUYDLR
    help !

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