REUTERS recently ran a fascinating article on the only modern gold mine east of the Mississippi River cranking back up. Historic Haile Gold Mine is hoping to mine 150,000 ounces of gold over 5 years with an investment over 650 million. I have found Reuters to be somewhat accurate on their news but they missed this one by a mile. Haile isn’t close to the only or biggest modern gold mine east of the Mississippi River. The reporter must have forgotten the biggest gold mine ever to stake a claim, Wall Street.
The owners of this gold mine, Romarco, should seriously reconsider the risk and investment at a time when Wall Street is paved with golden bailouts. After millions in environmental impact studies, millions in restoration, and millions more in wetland improvements my math shows Romarco could earn around $600 million off this gold mine in South Carolina. They could be wrong and not find as much gold ending up losing 100′s of millions too. Romarco Mineral is taking more risk than needed since Wall Street mines are producing much more profit with no risk at all.
Wall Street protesters are mad as hell but can’t consistently tell us why. Their movement has spread like wildfire but ask five why they’re there and expect five different answers. More taxes on the rich, maybe end the Fed, how about free health care and eduction? The gold, and anger, is at Wall Street because a shrinking underclass is catching on that the only giveaways are to those large enough providing power to leaders. The protests are 100% related to the growing gap between rich and poor while the rich line pockets with gold. America’s Middle Class sits around their televisions wondering why new age hippies are so upset all while their net worth drops like a rock.
We have written about the growing conflict here at www.theprospectorsite many times. Conflicts in currencies, conflicts in trade, conflicts among those bailed out and the one’s left out. The injustice is on several levels as true capitalism rides backseat to governments desperately trying to save their bacon. It would be bad enough if governments handed out tax payer money to the wealthy only but actually the money is borrowed making the situation much worse. Eventually the bailout money will cease but only after your dollar’s buying power drops, businesses shuttered, and the Middle Class begins to resemble the poor.
Most folks around the world have no idea what can be done about our economic situation. They watch Mr. Geithner blame Europe and Mr. Bernanke blame China all while wanting to believe the system isn’t corrupt when down deep they know otherwise. The fact remains you can’t change the Wall Street handouts no more than I can. You can’t stop the Fed or central banks from throwing trillions at a problem only to watch bubbles float away at the end. But we can outsmart the academics at their own game all while finding prosperity (and integrity). You must realize gold is penicillin to the world’s financial infection.
The value of gold will grow as currencies around the world print themselves into worthlessness. Even if you don’t understand gold you must see the choice for governments is to protect their own and print more money!! Demand for gold/silver will grow motivated by distrust, desperation, prudence, and fear. Inflation, deflation, and stagflation have never won over gold and this time will be no different. Please take a hard look at precious metal until honor, dignity, and restraint find their way back into leadership.