Melman on Gold & Silver
August 2014 by Leonard MelmanWhile most precious metals observers tend to pay more attention to action in the gold market as opposed to silver, there are times when the white metal can give us particularly sharp price targets going forward.
…2017 was just the first year with a small increase after a huge drop off in exploration activity. It may take many years of future increases to get back to where the activity was in 2012, as projected increases in exploration spending are seen to be slow and steady.
Perhaps the first and most important is the fact that the foreign exchange value of the US Dollar has been going down steadily for several months. As the value of the Dollar goes down, the price of goods in Dollar terms tend to go up…
...as a holder of contrarian points of view, I am somewhat delighted to see the recent enormous surge in published negative commentaries regarding gold's future.
Banking 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.
As we have repeated quite often, rising inflation—or, more particularly, the expectation of rising inflation—has historically been perhaps the most important ingredient of all in past precious metals bull markets.
While many prospecting or mining operations don’t have sufficient profits to benefit from accelerated write-offs or even the full 100% “bonus” depreciation write-off, other options can be equally rewarding.
…the general investment community has turned away from mining shares over the past three years and moved whole-heartedly into conventional investments.
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