Gold Sales

The sales of gold that were done by the Mining Bank are oriented primarily to satisfying the demand of the local market, made up by those the low implies as users (such as artisans, jewelers, orthodontists, dental and industrial technicians etc) who previously should comply with subscribing in a special register so that such effect existed within the Mining Bank.

Commercialization in the local market, on the par to the Mining Bank is done through the main and decentralized offices; attending the demand of processed gold of different sizes and calibers. 90% of the domestic requirements were presented in the main office for the item of export jewelry.

Starting from May of 1987, the sales that the Bank has done have been restricted to satisfy the demand of the smaller artisans and users; given the sales of jewelry for exportation that the Central Bank has assumed.

In the year 1988, 99.3 percent of the sales from the gold found by the Mining Bank has oriented to BCR and only 0.67 percent to the small users and artisans.

Commercialization Policies of Gold: When speaking about commercialization policies, we are going to circumscribe to the ones that actually regulate the internal gold commercialization that in the practice is oriented to satisfying the demand of the Central Bank Reserve that has the priority the law has given to it to acquire national gold to as to incorporate it into the monetary reserves of the country.

In the last years there has been a tendency to improve the terms of purchase from the small and medium size alluvial mine.

However the prices of purchase expressed in the national currency would lose competitively, in the measure that the difference between the type of official change by which the prices of buy and sell referred to by changing dispositions of the BCR and the type of change of the financial market was enlarging.

The situation that was previously pointed out, along with a lack of sufficient resources to carry out the acquisition of gold confronted by the institution and because of monetary policies implemented by the BCR conditioned the subscription of an agreement with the Central Reserve Bank, on the 7^th of February of 1986, out of which was given a revolving credit line in the national coin that was destined to finance the commercialization of alluvial gold and after that, since May of 1987, these were enhanced for the gold and refinery sub-products, without distinguishing of the productive scale.

The subscription of the pre cited arrangement allowed to strengthen the tendency to improve the terms of purchase from the small alluvial mine by establishing an award to the producer of 10 percent and after that from April 1987, generalize and enlarge this award to 15 percent to all the producers of alluvial gold, as well as to refinery sub-products etc. without distinction of scale of production (whether they were small, medium sized or large). Besides that other expenses such as commission of commercialization, auriferous canyon, etc are no longer for the bill of the holder, but rather that they are absorbed by the mining bank, and this meant that the producer obtained the integral part of his auriferous matter, plus the award, that was at 5 percent but negotiations were being made to improve it.

The next chronological sequence confirms the permanent worry of the BMP and BCR in correcting the prices of purchase in the national coin to not lose competitiveness due to differences of change; as far as the other determining factor, for the fixing of the purchasing price, that that of the international rate of the gold, escaping from our control.