Money & Markets

One last subject is the performance of gold and silver themselves—which has been positive for more than two months—and to explain the reasoning behind these rallies.

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…

The need to bring mining back to North America is more urgent than ever.

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.

Fundamental information on gold and silver turned more to the bullish side this past month, and we can point to three particular items as the basis for that conclusion.

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.

The combination of these two concerns—the drift toward socialism and the willingness to violate law—appear to me to be capable of raising the level of civil disorder to a point where such disorders could be positive influences on the price of gold and silver.

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.

...one of our most important technical indicators, the “Dow/Gold Ratio,” may be giving off an important signal at this time, which we discuss briefly...

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.