Mexico's Central Bank buys 100 tonnes of gold bullion

The main LatAm goldbug story out today is that Mexico has finally done the right thing and its Central Bank is a buyer of gold. During February and March, The Mexico Central Bank (known as Banxico) ploughed more than U$5Bn into buying around 3.25m troy ounces of gold (that's 100 metric tonnes). So according to those preliminary numbers, Banxico paid over U$1,500 for each ounce (1538). Apparently the FT broke the story, but we don't link to them cos they have a stupid firewall. Instead, hear more about the news via this Spanish language link.

UPDATE: On rummaging round the Banxico website it's not easy to spot the datapoint, but it's worth noting here that Mexico's total international currency reserves (i.e. us dollars) stood at U$125Bn as at April 2011 so the gold bullion purchase works out as 4% of Mexican reserves. Hardly a game-changer in itself, so goldbugs will be better advised to obsess over the trend.

An interesting Mexico

We like Mexico blog 'Aguachile' and we really like the post put up there yesterday that you too can check out vis this link. Aguachile points the way to a new report on just how profitable the North American Free Trade Agreement (NAFTA) has been.....for The USA. Here's an excerpt:

* "Mexican farmers on average lost more than $1 billion per year during the nine-year period of 1997–2005, with more than half the losses suffered by the country’s embattled corn farmers"

* "Without exception, the United States exported {agricultural] products at prices below what it cost to produce them, one of the definitions of dumping under World Trade Organization rules."

* "The losses from U.S. dumping surpass the total value of Mexico’s annual tomato exports to the United States, widely touted as Mexico’s biggest NAFTA success story in agriculture."

Go read more here.

Mining PRs and the Ottotrans™, Part 37

Today's example of Ottotrans™, bravely taking mining NR gobbledygook and valiantly returning it to a version of the English language that normal, well-adjusted people can finally grasp, comes from the keyboard of the IR department over at Torex Gold Resources (TXG.to). 

This is what they wrote:

TORONTO, ONTARIO--(Marketwire - 03/30/11) - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX:TXG - News) reports that it is working very closely with Mexican authorities and security measures are being discussed that will permit the Company to resume its exploration and drilling activities at its Morelos Gold Project in Mexico.
Fred Stanford, President and CEO of Torex stated, "I can confirm we have been in close discussions with the Economy Ministry of Mexico, who are spearheading efforts to ensure a timely and authoritative response to the temporary suspension of drilling activities at our Morelos Gold Project announced in our press release dated March 24, 2011. We are truly appreciative of the concern, interest and timely response shown by Minister Ferrari and his office as well as other Federal, State and Municipal officials."
"Action is underway and we are confident that Federal and State authorities will help facilitate the appropriate safeguards and security measures to allow us to recommence our exploration programs as soon as possible. We believe that this, along with new Company security measures, will result in a security presence that will provide long term stability for the Morelos Gold Project", he added "We could not have asked for better cooperation from government officials and plans are being developed for a timely return to the site."

And this is what it means:

TORONTO, ONTARIO--(Marketwire - 03/30/11) - Torex Gold Resources Inc. (the "Company" or "Torex") (TSX:TXG - News) reports that it still isn't drilling, its staff are scared crapless after being robbed of their 4X4 vehicles at gunpoint last week and that the salary bill for security going forward is going to cost an arm and a leg, what with the Morelos property being in the middle of freakin' nowhere and a sitting duck for further violent criminal attacks. I mean, it's not like Mexico has a problem with organizaed crime at the moment is it?

Minefinders (MFN) (MFL.to) update

I'm happy with the way this trade is going. Not only that, but we got the timing right too:

Y'see, even a dumbass like your humble scribe gets one right occasionally. Disclosure, long (reco'd to subscribers since November 3rd 2010) and still holding, because the target price is much higher (and it'll get there too).