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Friday, 23 May 2014

Reasons to Invest in Gold and Precious Metals Mining through USA Mining Companies


  1. USA provides stability of investment climate, which protects you from many forms of fraud and other forms of risks, especially those you might experience in the countries with political and economical instability. Business law exists in USA for hundreds of years, and it’s a common sense law. Experienced lawyers will be able to protect your interests starting from the preparing of necessary JV, loan or other documents. Title agencies in USA perform a title search, if real estate is involved, and insure the title. Public companies in USA report to SEC, and this protects you as a potential investor.
  2. If you invest in mining, you do not have to worry about visas to visit your business; it’s much easier than investing in real estate.
  3. American mining companies operate in an exploration sphere and precious and non-ferrous metals mining all around the world, so you will be able to choose a project you like and located in the geographical area of your preference.
  4. USA has a lot of natural resources, and especially minerals. Mining has been practically stopped during the Second World War. People switched to other areas of activity. Mines remained closed. (Over 90% of mining even now is being done outside of USA.) Later low prices of gold prevented extensive mining of precious metals. This industry started to rebound only in the end of the last century, and now it’s quickly growing. Despite the quick growth, we are pretty sure that the precious metals and non-ferrous metals mining industry is substantially under-valued in USA.
  5. Prices of gold, silver, platinum and many non-ferrous metals are skyrocketing, and it looks like a great upward movement is developing.
  6. Many placer gold mines which earlier could not be developed with economically viable results due to relatively low grade of gold or due to the fact that fine gold (micron particles), constituting the major fraction of gold had to be extracted with chemical methods. Nowadays, micron particles of gold may be extracted effectively (over 95%) by modern gravitation separation technologies and machines using water and power only, and prices of precious metals stimulate developing of mines with relatively low grade of precious metals. Sometimes, the ore from hard rock mines demands chemical processing. Newly developed closed-circuit chemical methods of ore treatment consume less water, making it easier to get necessary permits and keep mining environmentally friendly.
  7. Mineral mining law in USA makes it easy to claim and hold land for mining purposes. Some mining land can be sold and inherited as a real estate. There are three types of land which could be used for mining in USA.
  8. Some small gold mining companies in USA currently do not have sufficient funding sources to finance development of many very well explored precious metals mining projects, based on small and medium size mines.
  9. Amounts of funding required for every particular gold mining project could be relatively low because many mines are turnkey ones and ready to go, often even with equipment installed. There are some mining claims available where geological reports are impressive, reserves are well proven and permitting is done already.
  10. Gold bullion or nuggets as well as the ore or concentrate could be kept after produced by the mining company without paying taxes until it is sold in the open market. This fact allows gold mining companies to sell precious metals on the peak of their prices or just borrow against the bullion.
  11. Climate in the USA (except Alaska) and Central America mostly calls for 12 month operations, making it easier to achieve high return on the investment than if you mine precious metals in Canada, Siberia or Alaska having a operational season of 5-7 months in the best case scenario.
  12. Reserves of precious metals may be placed on the balance of your enterprise according to certain rules, so the book value of the company may grow even before you start gold mining.
  13. Taxes and accounting are very easy tasks in USA when you use professional companies for this purpose.
  14. It’s a myth that only in Africa or Russia you may do as good as 50%-100% return per year. Stocks of some small USA mining companies made much over that this year already.

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