In 2003, National Geographic Magazine published an article on La Rinconada, therein stating the population at that time was 30,000. The gold price per ounce at the time finished 2003 at $416 per ounce. Today with gold at over $1,200 an ounce, the population has swelled to around 50,000 people living and working at an altitude of 16,732 feet above sea level (5,100m). Even in a place rich in resources, mountains filled with gold, there is extreme poverty amongst those who work the mine, and surrounding hillside of La Rinconada. What would make someone endure the harsh living conditions, thin air, cold, and lawlessness? Is it the lure of money – get rich quick, or just the chance to be a part of something bigger? For the average Peruvian or those working six days a week, for the minimum wage of 750 Soles per month ($253.00) digging or sleuthing for gold could be tempting. In La Rinconada however, there are also doctors, lawyers and other professionals who quit their day jobs in search of the yellow metal.
With gold, silver and other metals prices being suppressed by manipulation of the Comex “Fixed” prices out of the “City of London”; what will happen when there is a true price discovery in metals, or when the new Shanghai Exchange resets the price of metals, possible doubling the price overnight? Will the population of La Rinconada grow even larger?
View this fantastic LA Times article and photo essay, posted by Michael Robinson Chavez on 1, April 2011: La Rinconada: Peru’s city of dreams
In other news concerning the metals I’ve included several links.
Chinese buying Peru’s gold, silver, copper-zinc and other mines Shanghai Exchange – The East will reset the West’s metal prices, as they are tired of the price “fixing” in the city of London.
My personal advice to those reading this blog post, would be to trade your fiat currency for as much gold, and silver that you can get your hands on. (you will want to keep some cash available of course, and not in a bank. Use Cyprus as a model.) You can thank me later. But if you don’t believe me, perhaps listen to Multi-Billionaire American born Hugo Salinas Price of Mexico, “What is going to be left after the dust settles is gold.”
An opposing view point to the further valuation in metals comes from Harry Dent, in this USAWatchdog.com video. He thinks there may be a deflationary period that will bring the cost of the metals down, instead of rising in value. Regardless if the price goes up or down, gold and silver are real money, and a store of wealth. The paper price could go to zero, but that gold or silver coin you hold in your hand, is not, and will never be worth zero. Do not invest in the paper markets like GLD, or SLV….they are just that, paper. Take possession of, or store your metals in a vault, and never in a safe deposit box at your local bank