Government must recover sovereignty over Bolivian gold | Gobierno debe recuperar la soberanía del oro boliviano

By El Diario:

The world buys the mineral, and Bolivia sells it

  • Economist Fernando Romero argues that illegal mining companies should be eliminated and only formal operations should be allowed, so the State can collect more royalties and taxes.
Economists propose modifying the regulations governing the sale and control of gold for the country’s benefit.

While the world is buying gold, in Bolivia it is being sold—and it’s in private hands. Faced with this situation, the government must recover sovereignty over gold; that is, if there is political will, illegal mining companies should be eliminated and only formal ones should be allowed to operate, which would bring in more resources in the form of royalties and taxes for the State and subnational governments, said Fernando Romero, president of the Departmental College of Economists of Tarija.

He also stated that there are illegal companies operating that leave only a few cents for Bolivia’s economy, yet they benefit from diesel subsidies and, to make matters worse, cause environmental damage.

Regarding the Net International Reserves (NIR), Romero said that the new government, after October 19, should recover the monetized gold, whose sale left the national economy unprotected—although he sees its recovery as unlikely, since with today’s high prices, Bolivia has lost twice over and this will lead to higher public spending.

Mining expert from Fundación Jubileo, Héctor Córdova, pointed out that the price of gold is breaking records worldwide—practically every day—and so far, it has done so 52 times, reaching unimaginable peaks and surpassing the $4,000 per troy ounce barrier.

Córdova explained that most people now want to save in something physical and solid, like gold, since its high price is expected to persist for some time—some predict between three and four years.

Meanwhile, economist from Fundación Tierra, Gonzalo Colque, shared on social media some guidelines to begin improving the country’s economic situation amid the shortage of foreign currency, high inflation, and fuel scarcity—such as curbing gold smuggling. He noted that out of 40 tons produced, 50% is smuggled out of the country.

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