Melman on Gold & Silver
November 2017 by Leonard Melman
Two potentially important Canadian projects, which could have produced revenues in the billions and jobs in the tens of thousands, have now been officially abandoned and the reasons offered by both relate to the economic impossibility of successfully negotiating all the regulatory obstacles that have been presented.
Although the risk of a federal tax audit remains low, thanks to the Internal Revenue Service’s secret audit selection process every prospector, miner, and mining-related business owner has good reason to fear an audit, but only if they are not prepared.
...rising inflation has been perhaps the greatest single positive influence during past golden bull markets, and the fires of inflation, particularly those driven by rising food prices, do appear to be glowing ever brighter.
Another area of growing international concern for business and industry is the recent astonishing proliferation of new government regulations and laws. Despite the presumably good intentions behind these measures it is now becoming apparent that they are imposing true costs to our economic society. The sheer variety of these laws and regulations is mind-boggling.
One area receiving huge attention is the promised ascension of free market concepts associated with Trump versus the government-dominated Keynesian ideas previously advocated by both President Obama and Hillary Clinton.
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.
...the much more important question is this: does this short-term strong rally necessarily portent a genuine turnaround from the metals share bear market that has been ongoing since mid-2011? For a possible answer, we turn to the long-term, five-year XAU chart.
The Bawl Mill • Legislative and Regulatory Update • Ask The Experts - How do I work this glacial deposit? • Ask The Experts - How do I best recover gold in pyrite? • It Pays to Know Your Bedrock • BLM Cancels 10-Million-Acre Sage Grouse Mineral Withdrawal • Take it to Bedrock • The Beatty Mining District of Nevada • Flood Plain Gold Deposits—What Are They Really? • Exploring Iron Oxide Copper Gold Deposits • Conrey Dredge No. 4 • Mining Stock Quotes and Mineral & Metal Prices