Melman on Gold & Silver
March 2012 by Leonard Melman...here in America, another legislative financial crisis was averted as the National Debt limit was extended in January to $16.394 trillion. Only one year ago the authorized debt limit was a “mere” $14.294 trillion.
There is one last indicator that I believe may be the most important of all. That is the “Index of Leading Economic Indicators” (LEI), which is a compendium of those economic indicators that point toward future growth, and LEI has just reached historic highs, far exceeding previous peaks in 1999 and 2006.
Given the enormous expenditures that are required to bring any mining property into production, the industry can ill afford a regulatory system which, by reversing already existent approvals, can nullify the value of funds already expended.
With conventional financing still difficult to obtain, it is little wonder that “self-financing” is the number one form of financing used by small business owners, miners and prospectors.
Well, the year 2013 is now underway and we have surely entered the “Brave New World” that has followed the election of 2012. From my personal point of view, and I might add, unfortunately, this year and the ones following are beginning to appear that they will turn out to be quite similar to the preceding period.
Whether to buy or lease is a question facing many small-scale operators and prospectors even as credit becomes more readily available. While there is no one correct answer that fits every mining operation or business, compared to the simplicity of buying, leasing is far more complicated and may be getting more complex.
One of the largest conundrums we would point out is the matter of rising interest rates starting to take place in several nations.
The Bawl Mill • Ask the Experts: Set up a small portable operation or send the ore to a custom mill? • Ask the Experts: Who manufactures the diagonal vibrating table? • Ask the Experts: Do "corners" need to be in place on the ground for a claim to be valid? • Ask the Experts: Tantalite in an African nation -- is it worth pursuing? • Legislative and Regulatory Update • Following Clues to a Hidden Gold Deposit • How to Melt Your Own Gold • Judge Tosses Lawsuit Against Tucson-Area Mine • Salted Mining Properties—How to Properly Evaluate a Claim • Fine Gold Panning Without Using Mercury • Australia Produces World's Largest Gold Coin • Fells Flat Gold • Colorado Considers Gold & Silver Currency • Mining Stock Quotes and Mineral & Metal Prices