It is interesting to note how the rising trends in Gold buying (speculating or hedging) in today’s marketplace is actually quite heavily related to Romania. A recent article from Spiegel Online International helps make this connection.
Rosia Montana in the Transylvanian Region is a reletaively unscathed “ancient” source of this precious metal which has been mined here for roughly 2,000 years. This “mine” still contains the largest gold and silver reserves in Europe. This village, Rosia Montana has nearly been submitted by Romania for inclusion on the UNESCO list of World Heritage sites due to the unique history of the area including its significance to the Roman Empire.
The Rosia Montana Gold Corp (80% Canadian owned) has indicated that it hopes to extract up to 10.6 million ounces of gold out of four open pit mines they wish to dig in the area. At current value that would be roughly 18 Billion Euros worth of gold – more than enough to justify the costs. Additionally, it is suspected that there are up to 1,600 hundred tons of silver within the site; that’s approximately another 1.5 billion in value.
As expected there is mixed feeling regarding the re-opening of this mining site. Many locals and Romanians alike wish to preserve the history and the heritage of the site, not opening up a “can of worms” with construction and health nightmares. The ones that wish to go ahead with this project are the ones considering the new economic opportunities that will be brought to the area. It is Traian Basescu himself that recently stated “It is in Romania’s interest that the mining of the gold begin as rapidly as possible… any country that has resources must use them.”
Surely Romania won’t make decisions based purely upon financial gain?