Mexico is the world's leading "Silver Producer" (producing about 25% of the global output), yet mining there is fraught with danger.

What is the problem simply?

"Cartel" gangs(large organized gangs that control a specific area and exert influence through force) are no longer just smuggling illegal goods; they are systematically extorting mining companies, including paying monthly "protection" fees, and imposing charges on production, equipment, and transportation.

February 2026 Incident:

Vizsla Silver faced a real disaster; instead of the usual extortion, 10 of its workers were kidnapped and a ransom of 10 million pesos per worker(about $11,760) was demanded. This was a fiftyfold increase over routine monthly payments. The result? Deaths among the kidnapped, and the company's stock lost half its value(50%) in just a few days.
Why don’t companies leave Mexico?

Running away might seem like a logical solution, but the "allure of Mexican silver" is stronger than fear for two reasons:
1️⃣ High quality: The silver in Mexico’s soil is extremely pure and available in massive quantities not found anywhere else.
2️⃣ Cheap labor: Labor costs there are 70% lower than in the US and Canada, and this huge saving is used by companies to fund private security armies to protect their mines.

How do companies protect themselves?
They have started using strange strategies, such as:

✔️ Changing the form of silver: They don’t ship shiny silver, but ship it as "raw dirt" that doesn’t attract attention so gangs don’t steal it en route.
✔️ Drones and surveillance: Relying entirely on drones to monitor movements around the mines.
✔️ Community coordination: Local residents depend on mining for their livelihood and form informal protection networks to prevent criminal harassment.
✔️ Company size reliance: Large companies like Pan American Silver have bigger security budgets and diplomatic capabilities, while smaller companies are more vulnerable.

Investing in Mexican silver today is like "walking on dangerous ground"; profits are high, but risks could wipe out the company entirely.
Do you think companies are justified in continuing, or is human safety more important than silver?

$USD1 $USDG

#GateSquare$50KRedPacketGiveaway #TrumpAnnouncesNewTariffs #WhenisBestTimetoEntertheMarket #CLARITYActAdvances #GateSpringFestivalHorseRacingEvent