While present official numbers remain quiescent at below 2%, we strongly believe the seeds of future inflation have now been laid via virtually unlimited currency creation by various central banks around the globe.

Given the astonishing increase in government expenditures of the past two years, one must ask if there is another parade of taxes and levies waiting in the wings, and, directly related to our precious metals, if there is some form of tax rebellion also waiting in the wings.

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.

The ultimate resolution of this apparent contradiction between fundamental news and market performance could provide us with important future clues for gold and silver.