Money & Markets
The Province of British Columbia, one of mining’s most active venues, has just issued a clear warning call to all miners that regulatory changes are on the way, and they may not be welcome ones…
There is no question the economy will not always be as good as it is now. There is also no doubt that someday the lack of exploration and the ore in existing mines running out will come home to roost.
If the costs of financing the national debt increase in a manner described in this study, that should, in our opinion, be regarded as a long-term plus for the precious metals.
It appears that market softness due to a slowing Chinese economy may already have affected precious and base metals quotes.
According to some experts, after the peak is reached, the production rate will slowly decline until it reaches near zero while the price shoots upward. At that point, we will have pretty much mined all the economic ore deposits that are present on the planet.
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.
There is one last indicator that I believe may be the most important of all. That is the “Index of Leading Economic Indicators” (LEI), which is a compendium of those economic indicators that point toward future growth, and LEI has just reached historic highs, far exceeding previous peaks in 1999 and 2006.
…2017 was just the first year with a small increase after a huge drop off in exploration activity. It may take many years of future increases to get back to where the activity was in 2012, as projected increases in exploration spending are seen to be slow and steady.
Other economic commentators have joined in regarding the sounding of alarms. Retired Republican Congressman and presidential candidate Ron Paul feels financial markets could drop a stunning 50%...