Most Popular
1. Banking Crisis is Stocks Bull Market Buying Opportunity - Nadeem_Walayat
2.The Crypto Signal for the Precious Metals Market - P_Radomski_CFA
3. One Possible Outcome to a New World Order - Raymond_Matison
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
5. Apple AAPL Stock Trend and Earnings Analysis - Nadeem_Walayat
6.AI, Stocks, and Gold Stocks – Connected After All - P_Radomski_CFA
7.Stock Market CHEAT SHEET - - Nadeem_Walayat
8.US Debt Ceiling Crisis Smoke and Mirrors Circus - Nadeem_Walayat
9.Silver Price May Explode - Avi_Gilburt
10.More US Banks Could Collapse -- A Lot More- EWI
Last 7 days
Stock Market Volatility (VIX) - 25th Mar 24
Stock Market Investor Sentiment - 25th Mar 24
The Federal Reserve Didn't Do Anything But It Had Plenty to Say - 25th Mar 24
Stock Market Breadth - 24th Mar 24
Stock Market Margin Debt Indicator - 24th Mar 24
It’s Easy to Scream Stocks Bubble! - 24th Mar 24
Stocks: What to Make of All This Insider Selling- 24th Mar 24
Money Supply Continues To Fall, Economy Worsens – Investors Don’t Care - 24th Mar 24
Get an Edge in the Crypto Market with Order Flow - 24th Mar 24
US Presidential Election Cycle and Recessions - 18th Mar 24
US Recession Already Happened in 2022! - 18th Mar 24
AI can now remember everything you say - 18th Mar 24
Bitcoin Crypto Mania 2024 - MicroStrategy MSTR Blow off Top! - 14th Mar 24
Bitcoin Gravy Train Trend Forecast 2024 - 11th Mar 24
Gold and the Long-Term Inflation Cycle - 11th Mar 24
Fed’s Next Intertest Rate Move might not align with popular consensus - 11th Mar 24
Two Reasons The Fed Manipulates Interest Rates - 11th Mar 24
US Dollar Trend 2024 - 9th Mar 2024
The Bond Trade and Interest Rates - 9th Mar 2024
Investors Don’t Believe the Gold Rally, Still Prefer General Stocks - 9th Mar 2024
Paper Gold Vs. Real Gold: It's Important to Know the Difference - 9th Mar 2024
Stocks: What This "Record Extreme" Indicator May Be Signaling - 9th Mar 2024
My 3 Favorite Trade Setups - Elliott Wave Course - 9th Mar 2024
Bitcoin Crypto Bubble Mania! - 4th Mar 2024
US Interest Rates - When WIll the Fed Pivot - 1st Mar 2024
S&P Stock Market Real Earnings Yield - 29th Feb 2024
US Unemployment is a Fake Statistic - 29th Feb 2024
U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - 29th Feb 2024
What a Breakdown in Silver Mining Stocks! What an Opportunity! - 29th Feb 2024
Why AI will Soon become SA - Synthetic Intelligence - The Machine Learning Megatrend - 29th Feb 2024
Keep Calm and Carry on Buying Quantum AI Tech Stocks - 19th Feb 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Russian Klondike Gold Rush is on the way

Commodities / Gold and Silver 2011 Feb 22, 2011 - 09:31 AM GMT

By: Pravda

Commodities Russia may legalize private gold mining, which was banned in the country during the 1950s. Deputies of the Russian State Duma upheld the initiative, having approved amendments to the law "About Underground Resources" in the first reading. Spokespeople for the Russian regions rich with placer gold, are interested in the amendments.


The chairman for the Federation Council's Committee for Natural Resources and Environmental Protection, Viktor Orlov, stated that if the new law is finally approved, an individual entrepreneur will be able to receive over 2 million rubles for two kilos of gold per season. According to Orlov, the starting capital for the equipment and tools that include a wheelbarrow, a pick, a shovel and a pump, will not exceed 50,000 rubles ($1,600).

A record number of deputies - 411 - gave the first reading to the bill, the Rossiiskaya Gazeta wrote. Law-makers would only have to work on some details to make the law come into effect by the start of the streaming season.

Senators and deputies representing northern and east-Siberian regions rich with stream gold have been lobbying the amendments for over ten years. The changes will lead to the revival of private gold mining, which was banned in the country during the 1950s.

In accordance with the amendments, extracting placer gold will be legally allowed only for Russian citizens, registered as individual entrepreneurs. They will have to obtain a free license (without any auction or competition) for developing certain fields of underground resources containing not more than ten kilos of gold (without any guarantees, of course).

As a result of the initiative, up to 10,000 new jobs will be created without additional investments. Many Siberian settlements in the Far North and in the Far East will be saved from poverty, experts say.

Gold mining is a very complicated and labor-intensive process, which requires extreme survival skills and knowledge of geology. The people will work at their own risk. They will have to work under conditions of the world-known Klondike Gold Rush. Tens of thousands of citizens will rush to taiga in a hope to amass great fortunes. It is not ruled out that they will launch a large-scale struggle for territories. Local authorities will have to simply face the new reality: they will be issuing licenses in cooperation with law-enforcement bodies.

It is hard to say what the new law will lead to: a higher level of gold mining or a higher level of criminality. However, it is obvious that the law may open a new environment for corruption.

In accordance with Article 16 of the law "About Underground Resources," the license shall be issued in association between a body of executive power and a federal body supervising state reserves of underground resources, or its territorial subdivision.

The license issue procedure for individual entrepreneurs has not been determined yet. Such issues, however, need to be elaborated completely at once, prior to the moment when problems may begin to occur locally. It is impossible to mine gold single-handedly. License holders will have to either unite or establish family cooperation. It is forbidden for gold miners to hire labor force. The tax and gold submission procedures have not been specified yet either. The issue of illegal gold market in Russia remains open still.

According to the Union of Gold Industry Entrepreneurs, the new law will give an opportunity to legalize nearly five tons of extracted gold. Nevertheless, the amendments to the law "About Underground Resources" may turn out to be both a prospective and a highly risky endeavor. The Russian gold rush in on the way.

Artyom Chernyavsky
Bigness

Pravda.ru

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Pravda Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in