Gold Markets

In the past years almost all the production used to be exported in certain places in South America such as Peru, even though the industry of transformation went gradually acquiring more capacity.

Until around 1985 this was not a big problem for the industry whose main source of supply constituted in recycled gold.

In 1985 the supply of secondary gold had diminished in a noticeable way and the exchange dispositions ended up making them inaccessible to the industrial exporter.

Despite the unsatisfied local demand, the mining business continued exporting their production until they arranged terms of internal commercialization and were then able to get the export industry to became their main mining client. 

In 1986, the BMP was able to see a decrease of the commercialization of alluvial gold of artisan miners and proposed the BCRP resolve the problem by means of an award on the price to this sector that channels commercialization to the official channel.

This brought about favorable results right away and by June of 1987 it became extensive to all the production of bullion, mines, washes or refineries, in the form of an award above the type of financial change that meant an increased pay of 40 percent.

At the same time the BCRP established a price of gold to the industrial exporters, related with the type of export change of this sector.

There is therefore, a very big difference between the types of change the miner used to receive if he exported versus the type of change that was established by the BCRP when it came to local buying.

Although it is a shame to say, the production of gold in Peru is not on the top mainly due to the fact that it has not received the right amount of affective support for many years. Affective support means good prices in first place, and measures of intelligent promotions that are complementary.

Stability in the measures of support is for the auriferous mine as well as for the industrial that transforms the metal equally important.