Top Junior Mining Interests Join Forces to Form U.S. Silver & Gold

Junior precious metals miner, U.S. Silver has plans to takeover another junior mining interest, RX Gold & Silver. Both companies base their operations in the United States. The agreement was signed by the companies in early June 2012. The contract leaves shareholders of U.S. Silver with nearly three-fourths of the new combined enterprise. RX Gold & Silver shareholders will get 0.109 shares in the new venture, while U.S. Silver will have 0.67 shares. The merged company will be known as U.S. Silver & Gold.

Both companies are majority owned by Canadian company, Sprott Asset Management. CEO, Eric Sprott has expressed whole-hearted support for the plan, which he believes will benefit all concerned. The pre-takeover companies will split management equally in the new company.

Each of the combining companies holds operations of recently revamped historic mines. Idaho’s Galena mine and Montana’s Drumlummon mine are producing silver, while the latter is also yielding gold.

Taking a Cue from a Famous Canadian Gold Investor and Philanthropist

Eric Sprott is one of the most well known and highly respected investment managers in Canada. His charitable entity, The Sprott Foundation, dedicates itself to providing for Canadians who have urgent basic needs, particularly lack of food and shelter. Sprott, himself is chief executive officer of Sprott Asset Management, which operates the foundation and holds nearly all of its assets in the form of gold bullion.

Recently, Sprott has been trumpeting the advantages of owning silver bullion, as well. He even put his money where his mouth was last August, by trading two million units of his London Good Delivery Gold Bars, in order to purchase an equal value of silver bullion.

Sprott monitors precious metals prices to gain advantage by capitalizing on relevant factors, such as market conditions. His belief in the increasing rarity of silver, due to accelerated global consumption, seems to be propelling him into ever larger silver holdings.

Cheap Credit Is Not Enough to Stave Off QE 3

When people refer to the Federal Reserve “printing money out of thin air” they are referring to Quantitative Easing (QE). This practice doesn’t actually involve the printing of physical money, but the net effect is the same; they increase the money supply by flooding financial institutions with capital.

How does the Fed pay for this? Well, saying it’s “out of thin air” is indeed correct… they simply create money that never existed.

Will inflation be inevitable?
Ben Bernanke claims these trillions of new dollars won’t cause increased inflation, but even a 5th grader can figure out that the more money available, the more prices will go up. It’s the law of supply and demand.

Of course at the end of the day, more money does not make anyone richer if everyone has more of it (wealth is always relative to others). Instead, the net effect will just be higher prices for everything across the board, which drives down the value of a dollar. This is the reason why so many are shifting some of their money away from US currency and into precious metals, such as silver mint products.

Cheap credit won’t fix the problem
During the first round of quantitative easing at the start of the recession, the idea was that more money would lead to cheap credit for consumers and businesses, and somehow, that would fix the economic problems.

As we’ve all seen, that simply hasn’t worked. Mortgage rates have been at all-time lows, but home prices keep falling. Credit card offers seem like they’re on steroids, with banks giving away huge cash back bonuses and 0% balance transfers for unusually long periods of time. Credit Card Forum states are like a drug, where consumers have become dependent (and expect) airline and cash back credit cards with unjustifiably high incentives, which simply are not sustainable or profitable for the banks to offer in the long term. To keep that party going, banks will need more QE.

Conclusion? QE 1 and QE 2 have not spurred economic prosperity. Instead, all they have done is gotten us hooked on the high of easy money. Eventually, we’re going to have to sober up.

What will QE 3 do to inflation?
Being that it’s an election year, don’t be the least bit surprised if we see yet another round of QE.  Obviously, this means now is an important time for re-evaluation of your assets to determine whether you should buy silver as a head against further inflation.

Gold and Silver Treasures Found at Israeli Archeological Site

Image Credits: Numismatic Bibliomania Society

The Jewish-Roman war, known as the Bar Kokhba Revolt, took place in Israel during the second century CE. A recent archeological excavation revealed a treasure trove, near Kiryat Gat. Cloth wrapped, and hidden within a building dating back to the Byzantine and Roman eras, one-hundred and forty gold and silver coins were unearthed. Believed to be hidden there by an affluent woman, the pit in which the treasure was found also contained jewelry, and vessels that held makeup.

Silver and gold coins contained in the cache date from from 54AD to 117AD, the time when the Roman Empire was ruled by Trajan, Nero and Nerva, whose images appear on the coin’s surfaces. Mythological figures and symbols appear on the flip-side of the coins.

Housed in Jerusalem at the Israel Antiquities Authority, the artifacts will undergo analysis by their Artifacts Treatment Department. The Authority began the excavation with funding from the Economic Development Corporation for the Management of the Qiryat Gat Industrial Park (Y.S. Gat Ltd.)

Brisk US Mint Sales of Silver Coins Lag Behind 2011 Figures

In May 2012, silver and gold coin sales jumped radically from April 2012 sales figures. However, these volumes represent far lower figures than the US Mint had experienced by the same time last year. Interest in precious metals coins has waned since 2011, as prices have failed to measurably appreciate in 2012. According to US Mint sales figures, 2011 was a banner year for coin sales, as precious metals experienced a “record-breaking rally” through year end.

May 2012 silver coin sales figures indicated a rise of nearly ninety percent over their April sales of 1,520,000 troy ounces. The 2,875,000 ounces sold in May 2012 showed a decline of more than twenty-one percent, from one year ago. May 2011 sales were 3,653,500 troy ounces. 2012 January through May sales showed a similar decline, year-over-year from 2011 to 2012. Despite this, 2012 could still prove to be a strong year in precious metals, as the European financial crisis deepens.