Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Tech Stocks Trending Towards the Quantum AI EXPLOSION! - 9th Jul 20
Gold and Silver Seasonal Trend Analysis - 9th Jul 20
Facebook and IBM Tech Stocks for Machine Learning Mega-Trend Investing 2020 - 9th Jul 20
LandRover Discovery Sport Service Blues, How Long Before Oil Change is Actually Due? - 9th Jul 20
Following the Gold Stock Leaders as the Fed Prints - 9th Jul 20
Gold RESET Breakout on 10 Reasons - 9th Jul 20
Fintech facilitating huge growth in online gambling - 9th Jul 20
Online Creative Software Development Service Conceptual Approach - 9th Jul 20
Coronavirus Pandemic UK and US Second Waves, and the Influenza Doomsday Scenario - 8th Jul 20
States “On the Cusp of Losing Control” and the Impact on the Economy - 8th Jul 20
Gold During Covid-19 Pandemic and Beyond - 8th Jul 20
UK Holidays 2020 - Driving on Cornwall's Narrow Roads to Bude Caravan Holiday Resort - 8th Jul 20
Five Reasons Covid Will Change SEO - 8th Jul 20
What Makes Internet Packages Different? - 8th Jul 20
Saudi Arabia Eyes Total Dominance In Oil And Gas Markets - 7th Jul 20
These Are the Times That Call for Gold - 7th Jul 20
A Reason to be "Extra-Attentive" to Stock Market Sentiment Measures - 7th Jul 20
The Beatings Will Continue Until the Economy Improves - 6th Jul 20
The Corona Economic Depression Is Here - 6th Jul 20
Stock Market Short-term Peaking - 6th Jul 20
Gold’s Major Reversal to Create the “Handle” - 5th July 20
Gold Market Manipulation And The Federal Reserve - 5th July 20
Overclockers UK Custom Build PC Review - 1. Ordering / Stock Issues - 5th July 20
How to Bond With Your Budgie / Parakeet With Morning Song and Dance - 5th July 20
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

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

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

© 2005-2019 - 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

6 Critical Money Making Rules