There may be reasons to make some trades though – you may have a dog of a company that you just don’t like. Dump it. Especially if you made trades earlier this year that have resulted in capital gains. You may be able to balance the gains and losses and improve your portfolio at the same time. But don’t do anything rash.
While we’re sitting tight, we’re not sitting still, though. Since gold prices are doing weird things along with everything else in the market, we decided to take a closer look at the mining industry as a whole. We already have done a little: see http://wp.me/p13fMw-w5
One interesting thing we’ve noticed is that the Big Boys (WSJ, etc.) seem to be paying more attention to mining operations in China, Australia, Chile, even Canada, but very little in the continental U.S. Why is that? They are also trying to find investments in rare earths as well as the standard gold and silver.
A few interesting articles we found include: Oil, Gold…Rare Earths?
Another one is here: Gold Massacre Gives Gold Stocks Chance to Catch Up
And what about Nevada? Let’s just go to the Nevada Mining Association website, instead of relying on analysts and financial journalists. There we learn that the industry employs 50,000 miners and workers from ancillary businesses.
The mining companies contribute more than $200 million a year in state and local taxes. This is a natural resource industry – one of the few industries that actually creates wealth by taking minerals out of the ground to be used for the benefit of people all over the world.
And the miners are very busy:
Nevada leads the nation in gold production and is the fourth largest gold producer in the world. Other minerals and ores produced in the state include: aggregates, barite, copper, diatomite, dolomite, gypsum, limestone, lithium carbonate, magnesium oxide, molybdenum, perlite, precious opals, salt, silica sand, silver and specialty clays.
Although Nevada is called the “silver state”, Nevada is the fourth largest gold producer in the world. Nevada operators produced approximately 5.6 million ounces of gold in 2009 worth over $5 billion. Nevada’s gold production accounted for more than 79 percent of total U.S. production and approximately 5.6 percent of world production.