Venezuela went from dumb to dumber with a decision that knocks out a number of companies on the verge of gold production

Last week, Ecuador joined the ranks of investor pariahs with its decision to put everything on hold in the mining sector for up to six months. Based on the full slate of proposals it’s likely a large number of the more junior explorers will be completely shut out of the country. This week, Venezuela went from dumb to dumber with a decision that knocks out a number of companies on the verge of gold production, most notably the hapless Crystallex. If you’re seeing a trend, you’re not alone. These sorts of actions, along with tax grabs, will be an increasingly common part of the landscape for international explorers. Good? No, but it’s the way of the world. Ask long term any oil and gas follower what happened after OPEC had its way in the 70’s. Governments worldwide lucky enough to be sitting on oil reserves have been using them as cash cows ever since.