Buying Gold in Colombia
Before you make any gold deals in Colombia you should be aware that buying gold in Colombia at this time is very difficult because the price has been raised too high to be competitive internationally. The guerrillas and paramilitary along with the “narcos” (drug lords) are buying the gold to be able to do the money laundry and this has deep influenceon the average national price per gram. As a consequence, investors have little success on buying gold legally in Colombia at a reasonable price. Either they are paying high prices or implementing the other way to buy gold and take it out of the country which is in jewelry, the rest of ways are illegal.
The following table shows the average gold prices in Colombia in comparison with thedaily London price as of September 2010:
| |Bought at % of |
| |London Daily |
| |Price |
|Outlaw Groups |96%-99% |
|Average Investor |95%-98% |
|National Refinery Companies |91%-93% |
|Compra-Ventas (Gold Buyers) |91%-92% |
|Banco de la República |75%-80% |
Now, foreign investors are having difficulties finding a gold provider because most gold sellers have already arrangements with either one of the gold buyers shown above.Usually the Outlaw Groups buy the gold from the Compra-Ventas in the small towns. The Jewelers buy the gold from the National Refinery Companies and the National Refinery Companies are already having difficulties buying the gold from providers because they are going to the Outlaw Groups. The National Refinery Companies are barely surviving because of old deals with the legal Gold Mines in Colombiathat have to provide the gold by contracts made long ago. Most gold miners are not selling the gold production to the Banco de la Republica because they simply pay too little.
Moreover, foreign investors in most cases have to deal with additional costs such as the “regalias tax” and by having to pay commissions to intermediaries to be able to find a gold provider. On top, there are the costsinvolved with exporting the gold in case they are not taking the gold out with them.
Finding Gold Legally and Cheaper
As a Forex and Gold Trader I have come up with a solution to provide gold to foreign investors in a legal and cheaper way. I have a network of people and companies capable of exporting 400 kg of gold a month and be able to sell gold to foreign investors at anincredible 85% of the daily London Price with all costs included and delivering the gold anywhere in the world .
The solution to be able to sell gold at such a low price is an integrated system combining Forex trading and buying the gold from the “barequeros”.
Investing in Gold Mines in Colombia
Mining in Colombia is basically an illegal activity. 95% of all gold mines in Colombia are notregistered or legally conducting business. As a consequence, most gold production actually comes out of thousands of small mines distributed all over the country and most of them are located in three main regions. Foreign investors are also having difficulties finding gold mines with all regulatory processes up to date. Even though the country has improved considerably in safety for foreigninvestments, it still lacks off international standards for gold mining. Many of the miners in Colombia are looking for foreign capital to be able to exploit their mines. Nevertheless, foreign investors are not willing to wait for the average 3 year legalizing processing time of most of these mines. At the same time, the Colombian government is now implementing and providing ways to the mining sector...