Friday, 3 February 2017

How Will Trump’s Border Tax Affect the Price of Silver?



You know, I don’t think it really would have much impact on very much. I mean, look, Mexico is having some challenges right now for sure, you know, with energy prices so low. The revenue is going into…the government Treasuries are lower than it is or it has been historically. So, you know, they have gone after the mining sector, you know, we know that. I think everyone listening to this knows that the tax was brought into place back in 2014. 


We’re paying that tax. It’s just basically normal course. If you compare it to other countries around the world, Mexico is about in the middle when it comes to taxation industry. 

So it’s a relatively low-cost country to be active in as a company. You know, with the peso the way it is, labor is extremely cheap. The peso is around 23 to 1, which is, you know, pretty good for us as our revenue is in U.S. dollars and 75% of our costs are in pesos. And the peso was about 12 to 1 just two years ago. 

It’s now 24 to 1 or 23 to 1. So it’s made a huge difference for us. So, you know, I’m not expecting much change in Mexico as a result of Trump coming in at all.

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