New Rules to Impact the Lease/Buy Decision
September 2014 by Mark E. BattersbyWhether 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.
On a personal level, I have been part of the business, brokerage and financial columnist worlds for 45 years, since the mid-1960s, and in all those years, I have never seen a collection of negative news items similar to what has been published during the past month. In short, taken together they may very well be describing the end of the economic world systems as we know them.
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.
Perhaps the first and most important is the fact that the foreign exchange value of the US Dollar has been going down steadily for several months. As the value of the Dollar goes down, the price of goods in Dollar terms tend to go up…
Our initial thought is simply this: why create these artificial currencies, unbacked by any material wealth, when the two items that worked so well century after century—namely gold and silver—are still fully available?
While a great many questions remain unanswered, there is little doubt that a new financing option for small-scale mining operations, “crowdfunding,” is growing as a viable and legitimate funding source.
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? • There's a First Time for Everyone • Appeals Court OKs Permits for Upper Peninsula Mine • Melman on Gold & Silver • Mining Stock Quotes and Mineral & Metal Prices