Gold and other precious metals remain high-value commodities. Unfortunately, that also makes these assets of great interest to desperate people looking to score some quick cash.
Colombian Gold Mine Theft
Following the coronavirus pandemic, both nations and citizens are struggling financially. No relief has been offered in most countries as of yet. Regions that were already stricken by poverty and heavy inflation, such as Colombia, will often see a sharp increase in overall criminal activity.
Speaking of crime, the Soma Gold company reported a theft at its La Ye mine. According to company officials, armed robbers entered the premises and stole property.They managed to obtain a doré bar of 475 gold-equivalent ounces.
Originally, the doré bar was supposed to be transported from La Ye to Medellin by helicopter. This is where things went wrong, as the robbers seemingly had insider knowledge of how these security protocols work.
By taking advantage of a change in security protocols, they were able to take the bar and escape the premises without any real problems. These security protocols were recently changed following the acquisition of Operadora by Soma. A full internal review of the security, as well as new internal protocols, have been put in place already.
Thankfully, none of the personnel on site were injured during this armed robbery. Local sources make no mention of any shots being fired or anyone being treated roughly. A full investigation by the local police, as well as the Colombian Military, will hopefully bring more details to light in the coming weeks.
The Demand for Gold is Rising
It is, unfortunately, not the first gold mine-related heist of 2020. The COVID-19 pandemic has made a lot of people desperate, with some willing to go through great lengths for a payday. Earlier this year, a very similar incident took place in Mexico, which involved somewhat similar circumstances.
Whether this is a sign of rising demand for gold, remains unclear. The leading precious metal has successfully remained bullish despite COVID-19. Now that the full impact of recently issued stimulus packages is becoming more apparent, demand for safe haven assets will only increase.
Even if prices may remain a bit volatile there is a genuine chance that gold will hit at least $1,800 an ounce later this year. There are many factors at play behind the scenes that provide a bullish case for all precious metals. By extension, silver will benefit from this momentum as well, especially since the gold-silver ratio recently underwent some big changes.