Melman on Gold & Silver
June 2013 by Leonard MelmanBanking problems continue to find their way into the world’s financial media, and we note below that another nation, Slovenia, is now grabbing attention with a banking crisis of their own as well as a downgrading of their national bonds by Moody’s Investment Services.
It appears that market softness due to a slowing Chinese economy may already have affected precious and base metals quotes.
There 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.
Perhaps the heart of our pro-gold thesis is this consideration: governments are inherently inefficient, they attempt to provide services far beyond their genuine fiscal ability and these trends result in deficit financing, growing debt levels and ultimate “watering” down of currency values.
Knowing how and when to deduct the cost and expenses of the vehicles used in the prospecting or mining operation can have significant tax implications.
...it is beginning to appear that we are recently witnessing a gradual buildup of background information that could lend strength to the arguments for ultimately higher gold and silver prices.
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