Editorial
Gold and the New Awakening of Colombia
Today the sovereign debt and dollar crisis, plus rising energy and gold prices, are combining with Colombia's growing reputation for tourism, real estate investing and retirement to create an investment potential long delayed by past decades of civil unrest. Many experts agree the former economic stagnation of Colombia is now considered a great benefit to foreign investors and the nation due to monetary events currently taking place on the world financial stage.
Would a company or nation rather have sold most of their oil reserves in the past at $25 dollars a barrel or prefer the future at $100-plus a barrel? How about mining gold during earlier decades at $300 an ounce in contrast to $2,000 or $5,000 an ounce in coming years? Of course, both company profits and share prices would likely increase exponentially from the higher prices but this is only one-third of the story.
What if the deepening sovereign debt crisis or a future collapse in public confidence in the dollar and other fiat currencies forces reluctant politicians and central bankers to return to a currency standard somewhat backed by a combination of gold, silver and oil reserves both above and in the ground? Because of past unrest, the nation of Colombia is uniquely situated to benefit from future oil and gold prices which could easily double from current levels due to a paradigm shift in Western monetary policies.
Although Colombia is one of the most resource-rich countries in South America, the earlier civil unrest forced the nation to miss out on the resource exploration and investment boom that swept the world during the last 30 years. This means Colombia may be the most under-explored and underdeveloped nation with untapped resources not just in South America but in the oil, coal and mineral resource hungry world today. Some experts suggest that only 20% of the in-ground mineral wealth has been explored, which translates into an unknown but tremendous opportunity for junior gold mining exploration ventures as well as other resource development, tourism and infrastructure projects in Colombia.
The delay in exploration is an even greater advantage to the nation and new investors because the current high prices of gold and oil along with stricter environmental concerns mean far higher revenues and better care of the environment than 20 years ago. Due to past history and political problems, Colombia today is an untapped and unexplored strategic petroleum reserve and Fort Knox combination that could really benefit investors and Colombia.
As I stated above, the profit opportunities for many will likely be enormous due to a paradigm shift in political, economic and monetary theory away from sovereign debt-financed democracy and fiat currency to new alternatives based on a more sound currency basis. This loss of confidence now seen across Europe and the US eventually could lead to more than a government-backed system, and later even to the Austrian economics ideal of public and private currency competition.
Today we see this loss in confidence evidenced by the growing EU sovereign debt crises and the American debt downgrade, as well as the recent debt ceiling political circus in Washington. In addition, governments and central banks began dramatically increasing their gold holdings in 2010 to diversify reserves out of the dollar, with net gold purchases in 2011 tripling so far this year.
Nations with substantial gold resources should benefit from the sudden end to 20 years of central bank gold sales as every nation and central banker in the world now understand the importance of gold to establishing a strong currency and monetary system. Every nation and central banker, that is, except America's "Abbot and Costello" financial comedy team of Geithner and Bernanke who have made the once secure American dollar and sovereign debt the joke of the monetary world.
Geithner's "strong dollar policy" is in tatters and met with laughter in foreign capitals. Bernanke's recent "gold and dollar disconnect" was apparent to all in a recent exchange with Congressman Ron Paul on whether gold was money. This stubborn resistance to the reality of thousands of years of world history showing the importance of gold to a secure monetary system is lost only on these two men, Geithner and Bernanke, as the price of gold, the weak dollar, foreign investors and bond rating entities vote in tandem in opposition to their monetary mistakes.
In the near future, a few nations like Colombia with a friendly, free-market business climate and adequate food and agricultural production combined with extensive untapped gold and oil resources are likely to be the primary beneficiaries of the paradigm shift toward resource backed currencies in the West.
Soon I will publish "The Opportunity of Colombia Report." I hope you will consider joining me in visiting and learning more about how you can take personal advantage of the looming currency, sovereign debt and political shift in the struggling democracies of Europe and America.
To learn how you can benefit from the Colombian opportunity in natural resources, real estate, tourism, offshore relocation and retirement to one of the most exciting nations on the earth today please request the coming report by clicking here.
l 
|
You must be a site member to submit suggested edits or post feedback. In addition to submitting edit suggestions and posting feedback, your Free Membership to The Daily Bell gives you access to our Member Zone where you will discover a plethora of other member benefits. Want to learn more? click here |
|||||
|
|
||||
 |
Posted by thejerkstore on 08/18/11 01:36 PM
While I can't comment on Brazil or Panama, as someone who has flipped several houses in Colombia, two in Cartegena, one in Barranquilla, and one in Cali, I have yet to see anything resembling a bubble. Quite the contrary, home appreciation has been slow and steady, and all of my transactions have been cash deals. All of them.
Home loans are limited to the upper class and seldom used, while the middle class are exclusively cash. I would like to know where it is you are getting your information from as on the ground it is a completely different story.
|
Posted by glenfarclas on 08/18/11 12:43 PM
You may want to look at Antioquia (AGD on the TSX Venture Exchange) who own a large Gold property, Cisneros, 55km northeast of Medellin in Columbia.
An extensive drill program is ongoing this summer and the share price appears very cheap to me.
|
Posted by jb on 08/16/11 11:03 PM
I spent the a good part of the past decade in Colombia from 2002 to 2009. Street violence has significantly diminished over the past decade. A majority of Colombians are heartily sick of the violence that has racked their country over the past fifty years and just want peace and an end to the fighting. Any cemetery in the country testifies to the fact that far too many young people have died over the past decades. Crime still exists and is a problem but no where near to the extent that it was in the late '80's and early '90's. During the years I was there the number of foreign visitors skyrocketed and the real estate/hotel business has boomed. I concur with Mr. Holland that Colombia has the best investment opportunities in Latin America. It is coming out of a twenty year war, the people want peace and are eager to start re-building their country. I'll look forward to his report.
Reply from The Daily Bell
And so do we here at The Daily Bell!
|
Posted by free on 08/16/11 08:33 PM
Your wrong, the world has a security problem, go to any black neighborhood in the US and if your white, where you you rather be Columbia or downtown Detroit.
Reply from The Daily Bell
There are serious crime and gang problems in many struggling white, black and hispanic neighborhoods only made worse by the economic problems caused by the Fed and Washington politicians and those interests who support them.
|
Posted by free on 08/16/11 08:30 PM
If you wait for an ETF than your trade with the heard and have missed the boat.
Reply from The Daily Bell
We somewhat agree with Mr. Perger on this. By the time there is a Colombia ETF the smart investors will be already in with their investment funds.
|
Posted by free on 08/16/11 08:29 PM
Colombia is safe, exciting and has not been blemished by empirical America . They still like Americas there? Imagine that.
I look foreword to the report Ron.
 |
Posted by RusskiStandart on 08/16/11 11:39 AM
I have visited Colombia 4 times. My wife is Colombian, of an upper class family, and I say categorically that crime rates and concerns with public safety have diminished. Whilst we are happy living in another Latin country, Colombia offers some of the best investment opportunities in Latin America. I eagerly await your report.
Reply from The Daily Bell
So do we.
|
Posted by Danny B on 08/16/11 11:07 AM
If one contemplates a return to security in Colombia, one is tempted to compare Colombia to Peru. Peru had Fujimori, Montesinos and Sendero Luminoso. Sendero Luminoso was squashed. They had no funding.
I believe that the security situation in Colombia should be compared to Mexico. FARC and the drug cartels have LOTS of funding. ETA and IRA are reportedly supplying the arms.
Click to view link
 |
Posted by clark on 08/15/11 11:43 PM
From the NY Times article, "Soldiers search almost every car at checkpoints on the winding road from Cali."
That, combined with the other links, sure does provide a conflicting viewpoint of Colombia.
Also,Danny B., thanks for providing the links about the guys on the motorcycle, that was interesting and cool.
From the DB article, "...the earlier civil unrest... past history and political problems..." ???
Not that anything is really all that better in the unitedstate, i.e. Click to view link
I look forward to reading, "The Opportunity of Colombia Report."
|
Posted by Danny B on 08/15/11 10:12 PM
Oh Great Bell. We 3 left L.A. in Nov. of 1975. We arrived in Mazatlan at the same time as hurricane Olivia. Click to view link
Quite a mess. Before leaving, we were all aware of the Atrato Swamps and the Darien Gap.
Upon arriving in Panama, we made trips back and forth between Panama city and Colon. We finally arranged passage for the van on a freighter. It arrived in Buenaventura.
Click to view link
We flew to Bogota and then on to Cali. Then we took a taxi to Buenaventura and reclaimed the van. We eventually traveled to Lima before things fell apart.
There was a ferry service started some years later. It appears to have been ended.
Click to view link
Encounter Overland organized a trek through there several years ago. The Darien was OK but Northern Colombia was particularly dangerous.
Click to view link
GM sent a fleet of Corvairs to go as far south as they could possibly go. Most of them are stuck in the jungle south of Cheepo.
In 1971, the British Army tried to send an expedition through there. They finally had to airlift in explosives so that they could blast their way out,,, I believe to the coast.
Several years ago 2 guys on Rokons tried 4 times and finally got through the Darien. The only vehicles to ever make it.
Click to view link
The U.S. gave token support to extending the pan American highway all the way through. Commercial interests didn't want cheap beef coming up and cheap manufactured goods going down.
Colombia has had some dramatic moments in crime. Guerrillas taped shotguns to the necks of several supreme court justices. The military attacked and Colombia had to find several new justices.
Click to view link
President Uribe was inaugurated on Aug 7, 2002. The presidential palace was attacked with rockets during the inaguration. VERY dramatic.
Click to view link
Colombia is a marvelous place. I like the country and I speak Spanish. It's the criminals who make it ugly. This from the state dept;
"In recent months there has been a marked increase in violent crime in Colombia. Murder rates have risen significantly in some major cities, particularly Medellin and Cali. Kidnapping remains a serious threat. American citizens have been the victim of violent crime, including kidnapping and murder. Firearms are prevalent in Colombia and altercations can often turn violent. Small towns and rural areas of Colombia can still be extremely dangerous due to the presence of narco-terrorists. Common crime also remains a significant problem in many urban and rural areas"
Click to view link
The largest mall in Bogota was on the no-go list last time I was there. While in Tumaco, I saw a few of the 'Arcos". I also saw the drums of chemicals and an unmarked plane from the state dept.
The kidnappings have gone up quite a bit. It's considered a "cottage industry". ANYBODY can participate. It's up 20 % this year;
Click to view link
True economic growth.
Reply from The Daily Bell
Yes we've followed the increase in crime rates over the last year and thought it was near impossible to drive to Colombia. Thanks for the update.
 |
Posted by Thomas Molitor on 08/15/11 11:58 AM
I think I will wait until iShares issues an ETF covering the country of Colombia before I feel safer as an investor.
 |
Posted by Col on 08/15/11 11:55 AM
For the love of God will someone ban this spammer!
|
Posted by Col on 08/15/11 11:53 AM
I've been watching Brazil, Panama & Columbia for about the last 3 years, all 3 have very serious housing Bubbles with an average of a 300% rise in Property values in that time, Australia & New Zealand don't fair much better, although not nearly as high, Australia for example has 1.3 Million vacant residential properties in a country that is supposed to have a "Housing Shortage" which just underscores the complete fraud of "Property Investment"
Only weeks after the GFC, Rudd & Gillard moved to increase the "First Home Buyers Grant" from $7,000 to $14,000 for an established home & $14,000 to $28,000 for a Newly Built Home, to "make Housing more Affordable", what a crock, instead there was a corresponding jump in Housing Values & instead of people actually having a deposit & the Grant in hand, people USED the Grant as a Deposit, the entire fraud was designed to suck more & more sheeple into unaffordable 30 year + Mortgages.
|
Posted by Danny B on 08/15/11 10:55 AM
Colombia has more than just unrest. I drove there once from L.A. and flew there several times. 1/2 of the kidnappings in the world took place in Colombia. Like Mexico, the drug lords control huge areas. I visited Tumaco where the cocaine spray planes are based. Colombia is a great place, they just have a security problem.
Reply from The Daily Bell
How long ago were you there and how did you drive there from LA given the highway has never been completed from Central Ameriva to Colombia?
