Ghanaian gold's role in the international arena.

It is by no mere chance that today's Ghana was once called the Gold Coast. When the first colonists disembarked found a land rich in resources such as bauxite, manganese, diamonds, crude oil and - the most popular then and now – gold. 

How can this precious metal save the day in Ghana and provide reserves worldwide?

In 1957 the territory known as Gold Coast was granted independence as Ghana. Since then, crude oil represents one of the main factors that boosts economic growth, nonetheless it is the yellow, and not the black gold, the real mainstay of the national economy, ranked 2nd in gold production in Africa with 38% of total Ghanaian exports. The country literally sits on a goldmine. 

Notwithstanding the plunge of gold prices of a few years ago in the international market led to a budget squeeze in the almost 20 gold mines, spread over four regions, where more than 30,000 mine workers got the sack. The same figure is applied for the regions affected, whose inhabitants have had to find alternatives and move to another regions. 

The government is resolved to take measures and fix the situation. For that, African Union recalled the intervention of the International Monetary Fund and the World Bank when gold mining needed to attract foreign investment which successfully was translated into large scale projects mainly owned by multinational companies, carving out a niche thus in the international market. 

The measure was meant to attract investment, not to develop the national economy. Gold mining companies overplayed their hand and now there is a deadlock between them, the government and the African Union. While the Union claim the use of mineral resources to boost development and bring real profit for the country by increasing taxes, the government does not dare to make a move that, according to the authorities, could dry up international investments and more people could lose their job.

The African Union follows the example of Niger, which last year got better terms for the locals, and is determined to leave aside the weakness of the government and reach an agreement with the companies. This agreement will not be decisive just for the national's economy, but to the global gold production as well. According to experts, every single spot of sand counts in the international arena for the fixing of gold prices. 

When it comes to profitable purchases of gold it is worth listening the clients of Global InterGold Internet Gold Shop who have the opportunities to buy gold under the most profitable conditions creating their own gold reserves.

Share this information in your social networks!

You may also like

No comments:

Powered by Blogger.