Melman on Gold & Silver
February 2011 by Leonard MelmanI 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.
Well, the year 2013 is now underway and we have surely entered the “Brave New World” that has followed the election of 2012. From my personal point of view, and I might add, unfortunately, this year and the ones following are beginning to appear that they will turn out to be quite similar to the preceding period.
Knowing how and when to deduct the cost and expenses of the vehicles used in the prospecting or mining operation can have significant tax implications.
In terms of gold and silver, if this mountain of unbacked debt, now reaching several trillions of dollars, Euros, Yen or other currencies begins to truly collapse into an inflationary spiral, we will witness the onset of the mother of all precious metals bull markets.
The most impressive fact about gold’s performance during 2016 is the yellow metal’s ability to withstand news shocks, hold on to previous gains and gradually move to new, higher levels.
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