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Nevada is Simply the Best

Commentaries & Views

In my opinion, Nevada is hands down the world’s premier venue for gold exploration and mining for a litany of reasons:

  • It is the world’s 4th largest gold producer behind China, Australia, and Russia with nearly 5.3 million ounces of production in 2016.
  • It is a geologically endowed gold province with several types of economic mineral deposits hosting world-class tonnages and/or grades.
  • It currently has nearly 40 active gold mines and also hosts the world’s largest and most comprehensive gold processing facilities. Six operating mills in northern Nevada process a wide variety of simple, complex, and refractory gold ores.
  • It is part of the United States of America where geopolitical risk is low, mineral tenure is secure, and the rule of law is sacrosanct.
  • In 2015, the mining industry had over 14,000 direct employees and an additional 65,000 goods and services jobs. The average mine employee was paid $92,000.
  • It is located in an arid, moderate, intercontinental climate with excellent infrastructure, unsurpassed accessibility, and a services industry that allow year-round mining operations and with a few exceptions in the northern part of the state, year-round exploration.
  • It has a low-density population that outside of the two major metropolitan areas, makes its living off the land by farming, ranching, and mining.
  • It has no personal or corporate state income taxes. Mining companies pay a 5% net mineral proceeds tax. With the recent Trump tax cuts, US-domiciled corporations and subsidiaries will pay a competitively low 21% federal income tax beginning in 2018.
  • With exception of the Las Vegas and to a lesser extent, the Reno and Lake Tahoe areas that rely on gambling revenues, the population is rural, individualistic, and overwhelmingly supports extractive industries.
  • It has a reasonable regulatory state bureaucracy that ensures environmentally responsible, safe development, production, and reclamation.
  • 85% of the state is federal land, mostly Bureau of Land Management with significant military reservations and minor Forest Service holdings. With exception of areas withdrawn for military purposes, the vast majority of federal lands are open to mineral entry.
  • A US Forest Service bureaucracy that formerly used bureaucratic, regulatory, and legal tactics to advance the Obama regime’s anti-development agenda has now become responsive and efficient under the Trump administration. Timely processing of work applications, permitting, and environmental documents is now the norm.

I prefer to put my hard-earned speculative dollars into gold explorers in the Western US and will continue to do so as the new bull market for all metals, including gold, continues to develop.

In that regard, I encourage you to monitor your inbox for a couple of Nevada stock picks in the coming days.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
1 oz Silver Mucha Rounds