Wednesday, December 29, 2010

Peru's luck-based economic growth, part 562

Here are the monthly production numbers for gold in Peru, 2009 to date (November's numbers out today):

Here's that gold in dollar value per month (using the average London Fix for each month, data from kitco).

So, Peru produces less and less gold but thanks to world market prices gets more and more money per month. And be clear how important gold production is to Peru, as it currently makes up 22% of all the country exports by value. The story in copper (Peru's number one export) is very similar, with stagnated production figures made to look far more impressive by the world price hike. My word, all this sounds like a recipe for a successful long-term economic plan*.

*yes, that's irony