Precious Metals, An Excellent
Investment
Over the last number of years such astute investors as Bill Gates and Warren
Buffet have taken significant positions in precious metals. They have been
handsomely rewarded as the price of gold take a dramatic increase to its current
25 year high. Gold value will continue to rise, according to many analysts,
primarily in response to growing government debt loads, consumer debt and
international trade deficits.
Bright Future for Smaller Gold and
Silver Deposits
In the past 50 years interest in gold first surged as prices rose to over US$800
per ounce in the late 1970's. The gold price slowly retreated as major banks and
the US government sold their holdings. In this period of retreat mining
companies sought out large low grade deposits amenable to low cost large scale
mining methods. Smaller deposits were ignored.
Since 2003 gold prices have shown a remarkable recovery, which is not likely to
be dampened by dumping because the banks either no longer hold substantial gold
reserves or they are now reluctant to sell their gold.
Under these circumstances there has been resurgent interest in smaller
precious metals deposits. The probability of finding larger deposits has
declined so many companies are examining the previously overlooked smaller
former producing mines. The renewed interest in smaller deposits is also growing
because smaller operations can take advantage of recent advances in recovery
methods and have less impact in the environment. For those individual investors
with vision, these smaller deposits represent a unique opportunity to profit
from the rising price trend and represent an opportunity for hands on investors
to produce metals in a healthy, remote outdoor setting.
Deductible Expenses, The Precious Metals You Recover Are Yours
Expenses incurred in the course of mining exploration are usually deductible from
other income. For tax deductions available in your particular circumstances
please see
your accountant. The government does not levy a special tax on precious metals
recovered and the gold and silver you recover is yours. Only normal business taxes are due
on profits.
