Will Burkina Faso Nationalize Gold and Other Mineral Mines? Will This Contribute To a Rise In The Price of Gold? – October 8, 2023

As per usual the French are being exposed for their economic stupidity, namely their reliance on Africa, to maintain their socialist paradise. You’re seeing more and more French-speaking African nations rise up, primarily because of the PARIS ACCORD, which is hurting developing nations the most.

Obviously, Russia and potentially some other actors are behind these military takeovers in French-speaking Africa, but I don’t write on this blog to talk about military things.

If you’ve invested in any gold mine in Africa, by this point you’re used to these types of situations happening, it’s usually built into the stock price if a public company or it’s priced into the capital you’d lend to these private entities.

This is usually a cyclical event in Africa, in that the African nations will nationalize the industry, imagining that anyone can do what the private companies are doing, and then to add fuel to the fire, the new leaders of these African nations will seek to push the price up, which ends up hurting them, in the market place as all private entities have to make sure the numbers make sense before presenting the new prices to their investors.

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I’m not sure how long it will take for this situation to get under control, but my guess is that it will take decades, especially if these African military leaders start implementing their own price controls on their minerals. The comprehension that African FISCAL policy is the problem is not something most Africans are willing to accept, equating to their poverty cycle repeating itself.

People are unaware, if you start trying to raise prices and there are no buyers, the people whom you’ve freed from the French will likely turn on their leaders, and then this will justify the military leaders becoming more brutal to their own people and then you should understand how these situations end up in genocide.

Most people ignore the economics of what led to the genocide in Rwanda; as I like to point out, Africans tend to have a hard time comprehending the importance of PROPERTY RIGHTS for foreigners, so whenever these military dictators take over, they take over with the assumption that they’ve TRAPPED the wealth and that they can better redistribute it, but that’s not how wealth works, wealth is not STATIC, so if property is ceased and contracts are no longer honored, well, then good luck finding new investors.

From there when the people see that their new African leaders don’t know anything about economics, the people will start doing what they know how to do, which might be to dig for gold on their own and find someone who will give them pennies for it so they can buy something to eat.

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So I don’t know if this will make the price of gold go up, the U.S. dollar has been on a tear, because the global economy is via the Democrats in the U.S. destroying the global economy.

Interesting times ahead!