Melman on Gold & Silver
September 2014 by Leonard Melman...when we begin to observe what appears to be an early indication toward a more bullish stance in one of the major miners, that can reasonably provide us with a rising degree of optimism for the sector itself.
Australia’s Perth Mint currently holds the record for the world’s largest gold coin.
It’s been no secret that the prices of gold and silver have been moving upward at a fast clip in recent months. Gold has soared 27 percent so far this year. There has not been a significant drop-off in production, so it’s been evident that an increase in demand has been a part of the force driving the price upward.
Some financial commentators have speculated that bitcoin and other virtual currencies have captured a portion of funds that would have been invested in gold. I find it a bit ironic that people who invest in precious metals would even consider another fiat currency.
Somehow, we received the impression from these two gatherings and from other conversations that bureaucrats in general are simply not aware of how difficult it is to raise capital to finance mining operations and how important it is for newer companies to show true progress in order to receive further financing.
I believe gold and silver prices, to at least some extent, negatively mirror the society's confidence in the ability of government to continue providing economic and social services.
How can it make sense to pass legislation to increase the spending power of the citizenry in order to stimulate economic activity and, at the same time, enact a series of new taxes that will diminish spending power?
We’ll conclude by digging a bit more into the regulations and pitfalls, and discuss what they are used for, their relationship to gold, and what the future holds.
The Bawl Mill • Ask the Experts • Ask the Experts • Taking on the EPA, Sasquatch, Ratchilla and Gold Dredging • Gully Prospecting and Mining • Wilfley Tables—Repair, Rebuild & Set Up • Designing and Evaluating Placer Gold Recovery Plants • Finding Streams of Gold • This is Why You Check Your Tailings • Lode or Placer: What Difference Does It Make? • New Rules to Impact the Lease/Buy Decision • There's a First Time for Everyone • Appeals Court OKs Permits for Upper Peninsula Mine • Mining Stock Quotes and Mineral & Metal Prices