During the 1920s, Argentinians had higher incomes than the French, Italians and Spanish. Millions of immigrants from across Europe and South Africa arrived in Buenos Aires. The Jewish population in Buenos Aires was larger than everywhere, except New York.
Without taxing or registering immigrants, Argentina was truly a “free” country. Immigration influx, natural wealth, small government, rule of law and respect for property rights propelled it to the sixth richest country, with incomes similar to those in England.
As any political pundit will acknowledge, more votes are in cities. Urban voters fell for “Peronism” — steal from the rich, give to the poor and get elected. Juan Perón, minister of labour, settled strikes by increasing wages, and when elected president in 1946, he continued. Government-run pensions and restrictive labour laws kept the votes coming. The government grabbed farm exports and key industries. Price controls kept urban voters happy.
That’s been the pattern for 100 years — make promises, print money, run deficits, borrow and repeat. When bills come due, print more money while blaming the rich and going broke every decade or so.
Argentina’s economic distress and chronic inflation come from creating money and overspending. When Milei became president he promised to end inflation and spur economic growth.
Covering an area of 2.8 million square kilometres and spanning almost 4,000 kilometres long, Argentina’s climate incorporates rainforest-covered tropics and sub-Antarctic conditions.
Rich in metals, its mineral resources include gold, silver, lead, zinc, tin, copper, iron ore, manganese, petroleum, uranium and lithium.
Milei has already begun lifting economic restrictions and controlling the fiscal deficit.
The Ley de Bases shields investors from the risks of the Argentine economy while it outlines tax, foreign exchange and regulatory incentives, including a 30 year stability guarantee.
It’s also intended to bring more adaptability to the labour market, authorise renegotiations of several public infrastructure contracts and modernise energy regulations.
Sierra Cuadrada, located in the San Jorge Basin, has a significant history of high-grade, near-surface uranium-mining operations, and provides Piche significant exploration upside amid a rapidly expanding uranium market.
The Cerro Chacon gold project is located 10 kilometres south of Paso de Indios in the Chubut Province of Argentina. Structural mapping and geochemical sampling at the Chacon Grid have identified mineralised systems consistent with surface signatures at the Cerro Negro mine, which boasts a contained metal inventory of 5.8 million ounces of gold and 50 million ounces of silver.
The historically volatile Argentinian economy has stymied its mining industry for decades. Now, with a new government promising sweeping economic changes, mining companies are re-entering the region, sparking market optimism for Argentina to emerge as a stable, secure source of high-demand metals of the future.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
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