Illegal Gold Mining Overtakes Cocaine Trafficking in Colombia, CEO Comments - Video - TheStreet

Illegal Gold Mining Overtakes Cocaine Trafficking in Colombia, CEO Comments

KITCO NEWS — U.S. Global Investor’s CEO Frank Holmes joins Kitco News to talk geopolitics, the Chinese yuan and illegal mining overtaking cocaine trafficking in Colombia.
Author:
Publish date:

KITCO NEWS — U.S. Global Investor’s CEO Frank Holmes joins Kitco News to talk geopolitics, the Chinese yuan and illegal mining overtaking cocaine trafficking in Colombia. News broke recently that illegal gold mining has been occurring in the South American country, so much so, that Colombian President Santos came out saying that it brings in roughly $2.5 billion annually and is a major issue of concern. According to Holmes, the issue is with the country’s leadership. 'Santos has sadly lost control of rule of law,' Holmes said. ‘The real, major disappointment has been the leadership of going after these thugs that are hurting mine workers,’ he added, noting that there are very, high-grade deposits in Colombia. Commenting the gold price ahead of U.S. Thanksgiving, Holmes says it is really the imminent rate hikes that are causing short-term volatility in prices. February comex gold futures are down on the day and were last quoted down $2.40 at $1,070.80 an ounce. ‘Thoughts are that if rates rise 25 basis points, gold is going to get clobbered,’ Holmes said. ‘I don’t think so…the real number we’re going to follow in 2016 is CPI (consumer price index).’