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American Resources Policy Network
Promoting the development of American mineral resources.
  • Silver fundamentals strong, may outperform gold

    It looks like we at American Resources are not the only ones noticing the increased appeal of silver – our “Metal of the Month” for March. The Gold Report interviewed several executives from the sector in a virtual roundtable for its latest issue. Here are the key points:

  • The fundamentals behind silver are strong.
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  • Silver’s new uses have made it a strategic metal, required in electronics, solar panels, and many new medical applications due to its anti-microbial properties.
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  • Demand for industrial silver uses climbed 17% last year, despite high prices. Price may be less relevant now, as only small amounts are needed, but as pace of new digital products is “exploding,” one of the panelists sees “silver consumption increasing dramatically.”
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  • Silver has strong appeal as store of value. With the purchase of Canadian Maple Leave silver ounces and U.S. Silver Eagles exceeding production, and investment demand remaining strong, some believe silver may outperform gold.
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  • Much of the world’s silver is mined as a byproduct of zinc, lead, copper and gold mining in more than 30 countries. Peru and Mexico account for one-third of global silver production, with Mexico’s change of foreign investment laws having lead to a mining boom with more than 300 Canadian mining companies exploring and producing.
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    With its new applications, silver is a prime example of the fact that this is not your grandmother’s resource sector anymore. As their utility broadens, metals and minerals are increasingly becoming foundational elements that will drive the 21st century economy. It is time we develop a coherent strategic framework reflecting this fact while harnessing our own vast mineral potential, and creating valuable jobs in the process.

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  • Gold and politics: The lure of security for Venezuelan President Hugo Chavez

    A weaker-than-expected jobs report in the U.S. has seen the price of gold soar once again.   Gold’s surge and paper currency’s weakness may be related to Venezuelan President Hugo Chavez’s plans to shift up to $6.3 billion in U.S. dollars, euros and pounds sterling to banks in China, Russia and Brazil, and to repatriate almost all of Venezuela’s gold reserves held abroad.  The plan was announced last month on the heels of steps to nationalize the nation’s gold mining industry, ostensibly taken to combat illegal mining.

    Venezuelan officials have argued that a weakening U.S. dollar, and the United States’ and European debt crises were contributing factors in the decision.

    In all likelihood, Chavez, ill and often characterized as being paranoid, is acting out desperation. But whatever his real motives, his plans are yet another indicator that in the current climate, metals can trump paper as a global currency and store of value.

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  • EPA Urged to Oppose Wind, Solar Power

    Well, you won’t see that headline atop of pieces like this one in the Alaskan press, but it’s a logical extension of policy actions like the one proposed to stop a copper/gold/molybdenum mine in Alaska.  In this case, we’re told that we can either allow the mine to proceed – or we can save the [...]
  • Mongolia Weighs its Resource Options

    History is typically difficult to see up close, but it’s possible that resources are sparking a great geo-political reordering on par with the mass discoveries of oil that made the Middle East a rising economic power the mid-20th Century.  Witness the country of Mongolia, a geo-political pawn for much of the last hundred years, but [...]
  • The race for Arctic riches

    A handful of countries situated near the top of the world are racing to firm up their territorial claims to untold amounts of oil, natural gas, gold, zinc, copper and other metals. A new piece from the U.K. Guardian highlights this renewed scramble for resource rights beneath the Arctic icecap. I treated this story in [...]
  • Peruvian Elections Raise Issue of Resource Dependency for U.S.

    The election victory of leftist Peruvian presidential candidate Ollanta Humala in this week’s runoff election has instilled fears of higher taxes and new restrictive policies in the mining sector.  Peru is a leading producer of precious metals, and the U.S. relies heavily on Peruvian imports of zinc, tin, gold, copper, and silver. (To see exactly [...]
  • Global events send price of gold soaring

    With the news cycle dominated by the ongoing crisis in Japan, unrest, and war in the Middle East, and financial troubles of European Union member countries; the price of gold is soaring. As CBS News reports, investors big and small are lured by the perceived safety of the commodity, sending its price to more than [...]
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