Positive economic development is one of the primary advantages for mining gold in contemporary times. Gold mining is a sector of trade and business that governments use to improve their nation's economic systems.
Foreign Investment
Foreign Direct Investment (FDI) occurs when one country participates in another nation’s development. Developing countries' FDIs increase when gold mining is used to create factories and by increasing mineral exports.
Foreign Exchange
Gold can be used in foreign exchange as a form of currency. Gold mining offers an advantage to a developing country's economy because it can quickly overtake traditional export.
High Revenues
The World Gold Council states that governments can tax the mining operations that produce gold. Gold mining can be advantageous for developing countries that have a limited tax base by generating extra revenue.
Investment
According to BullionVault.com, gold mining operations can be advantageous as investments because the value of the shares is related to the price of gold and gold mining stocks are valued though the lifetime of the mine.
Developing Countries
According to the World Gold Council, developing countries accounted for 72 percent of the global output of gold. Many economically challenged nations that possess gold can use this element to improve their nation's infrastructure, employment opportunities and various sectors of society.
Writer Bio
Steven Miller earned his associate degree in the field of education and is currently continuing his education at Ohio Dominican University. A freelance writer since 2010, Miller enjoys gaining valuable experience and growing as a writer.
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