Melman on Gold & Silver
January 2012 by Leonard MelmanThere is little question that the crisis in Europe completely dominated world financial headlines last month. We saw nations such as Finland, Austria, France, Belgium and Hungary, which had previously appeared untouched by developments, suddenly become vulnerable to higher domestic interest rates.
The so-called “Fiscal Cliff” tax package recently passed by Congress and signed into law renewed more than 50 temporary tax breaks through 2013, saving individuals and businesses about $76 billion.
When governments are hit by a barrage of such economic news, they usually react by attempting to stimulate economic activity by spending money, as some might say, “like drunken sailors”…
Occurrences such as these have proven, time and time again, that gold possesses the attribute of maintaining significant value over time, something that cannot be said of unbacked, fiat paper money where every such issuance has eventually deteriorated throughout history into virtual worthlessness.
When one of the major currencies in the world begins to decline steadily, based on monetary history we would expect a bias toward positive movements in the precious metals.
The Bawl Mill • Southwest Alaska Gold Project Progresses • Good Assays and Bad • Where to Find Gold in Indiana—Part II • Who is a Qualified Person? • Time Well Spent • Reality of the Klondike • NWMA Show • River Dredging vs. Creek Dredging—Part II • Pot Hole Gold • Mining Stock Quotes and Mineral & Metal Prices