Melman on Gold & Silver
December 2019 by Leonard Melman
...we believe that these measures will also lead to diminished profitability, diminished tax revenues and, therefore, increasing calls for massive new economic stimulation which again, by historic standards, could well work to the benefit of the precious metals.
I hope long-term readers would agree that while your columnist does occasionally carry some arguments to an extreme length, I usually stay within the bounds of reason. I am pointing this out because I was struck by an economic vision a few days ago that could test those bounds.
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.
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.
I believe this is a powder-keg waiting to explode down the road—with potentially devastating effects on society—but positive implications for gold and silver.
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.
The Bawl Mill • Ask The Experts - How do I obtain a map of Montana gold & sapphire gravel bars? • Ask The Experts - How do I process this white quartz with black striations? • Ask The Experts - Does gravel + bedrock = gold? • Back to Green Valley--With A Sluice • A Lesson In Underwater Sniping • More Fiddling While Forests Burn • Achieving Accurate Metal Detector Discrimination • My New Passion--Crystal Hunting • The Half-Mile Claim • Mining Stock Quotes and Mineral & Metal Prices • Gold Prospecting for Better or Worse: White Knuckle Mining