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.
One of the oldest sayings we all learned as children was “Water, water, everywhere, but not a drop to drink.” Following developments during the past month, we might rephrase that as “Questions, questions, everywhere, but not an answer to truly trust.”
Reservers and resources are very important to prospectors and miners, but they may be vague terms to some.
With conventional financing still difficult to obtain, it is little wonder that “self-financing” is the number one form of financing used by small business owners, miners and prospectors.
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.
Whether to buy or lease is a question facing many small-scale operators and prospectors even as credit becomes more readily available. While there is no one correct answer that fits every mining operation or business, compared to the simplicity of buying, leasing is far more complicated and may be getting more complex.
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.
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