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Friday, December 3, 2010

We All Own Gold Mines


Some of the gold mined in the United States is extracted from public land owned by you and me. Gold currently, as of 12/2/10 sells for $1,391 an ounce, which is over $1.25 million for one gold bar.

What do we get in return for the gold that is taken from taxpayer owned land? Nothing! The companies are not legally required to pay royalties for the gold they take from the land. Oil companies and coal companies have to pay royalties for resources they take, but not gold companies. Why is this? It all dates back to 1872, when Congress passed the General Mining Act of 1872, which authorized the prospecting and mining for economic minerals such as gold, silver, and platinum. All citizens of the United States of America 18 years or older have the right to locate a lode (hard rock) or placer (gravel) mining claim on federal lands open to mineral entry.

Why hasn’t this law changed? Because the gold industry has tremendous political power. Their reason for not allowing this change? The gold industry claims that with royalties imposed upon them, they would not be able to operate, and would seek opportunities elsewhere. Surely a company that charges over a thousand dollars per ounce can still remain profitable when the coal industry has to pay royalties and they only charge around $70 per ton.

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