Peruvian Election Long-Term Supportive Factor for Metals
Source: Kitco, Allen Sykora (6/6/11)
"Peru is an important producer of gold, silver and copper."
Ollanta Humala has claimed victory in Peru's presidential election, and this should be a longer-term supportive factor for metals such as gold, silver and copper, says George Gero, vice president with RBC Capital Markets Global Futures.
Peruvian mining stocks fell on worries Humala will impose more government controls on natural resources and hike mining royalties. Historically, state control of resources has tended to curb production, which means less supply, Gero says. "Production is likely to suffer in the long run," Gero says.
Peru is an important producer of gold, silver and copper; a GFMS report this spring listed it as the world's second-largest silver producer after being overtaken by Mexico last year.