Forget warnings from the IMF, the OECD and George Soros. You know your currency is well and truly down the swanny when even drug dealers are refusing payment in it.
Paul Mylchreest, of the Thunder Road Report, notes that a "very suspicious" 174 tonnes of gold compounds were exported to the Dominican Republican – "that well known hub of the world gold trade"
"Maybe these gold compounds really are used in gold paint and that artist who normally puts colourful tarpaulins around islands and buildings has painted the whole of the Dominican Republic gold," Mylchreest ponders. "I'll go and check Google Earth."
But, he reckons the transformation of the Dominican Republic into a key staging post in the cocaine trade between South America and the US, is a far more likely.
"Wouldn't it be interesting if drug smugglers have seen the writing on the wall for the paper dollar and will now only accept payment in gold bullion?" (source: Telegraph.co.uk - read full article)
Note from Dominican Watchdog;
Its also no secret that lots of the drug money in the Dominican Republic is washed in Dominican real estate developments however due to the financial downturn gold is probably becoming more attractive....
Related article: Goldcorp operating the goldmine in Dominican Republic might get into financial trouble........., He also expressed some concern about Goldcorp's ability to stage its share of the US$2.7 billion Pueblo Viejo joint venture with Barrick in the Dominican Republic. (source: mineweb.com - read full article)