Money & Markets
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%...
…we cannot ignore the fact that several of the most widely-followed and respected economic voices are now raising questions about the potential near-term development of a full-blown market panic.
...the tax rate for an incorporated, small-scale mine or mining-related business will be reduced from the former 35 percent rate to 21 percent for the 2018 tax year and thereafter.
We’ll conclude by digging a bit more into the regulations and pitfalls, and discuss what they are used for, their relationship to gold, and what the future holds.