Colo. Officials Hope To Turn Shuttered Historic Silver Mine Into Tourist Destination

Ute-Ulay Silver Mine in Colorado (slideshow at SFgate.com)

Hinsdale County in southwest Colorado is now the proud owners of the historic Ute-Ulay silver mine and mining camp, which has been inactive for decades. The mine’s owners signed over the title to the mine last month, as county officials have worked with government agencies to arrange cleanup of the contaminated mine. Mining practices in the 1800s were not as safe as modern mine production, and the mine also produced large amounts of lead ore as well as silver. Once environmental remediation is done, the county plans to open a mining museum and tourist attraction.

In the meantime, they are working to preserve the crumbling 19th century buildings of the “ghost town” on site. Silver was found in present-day Hinsdale County in the 1870s, when it was still the tribal land of the Ute Indians. County commissioner Stan Whinnery told Associated Press that the old mine is already a popular photography site for tourists passing through the sparsely-populated area in the San Juan mountains. “If we had a nickel for every photo taken from there, we’d be millionaires already,” said Whinnery, whose family was one of the first to settle in Hinsdale County in the 1800s.

Read the entire story and see a five-photo slideshow at SFgate.com.

Many more photos at http://uteulay.wordpress.com

Silver and Gold Top Assets During Obama’s First Term

Right after the U.S. Presidential election, Jim Reid from Deutche Bank put together a chart to show how various assets fared during Obama’s first term in office, with an eye towards what to consider for the next four years. Interestingly, silver trounced all comers, posting a 211% increase Election Day 2008 to Election Day 2012.  Silver actually hit its peak in April 2011 at 340% over November 2008, before dropping 38%.  The second-best performing asset was gold, at 124% increase, starting at $751/oz on November 4, 2008 and ending $1683/oz on Election Day 2012.

With the dollars from four years worth of unprecedented quantitative easement already in the system, one wonders what this chart will look like in four more years?

by David Peterson

Analyst Predicts $165/oz Silver by 2015

The Daily Telegraph is carrying an interview with asset fund manager Ian Williams of Charteris, who predicts a 400% rise in silver prices over the next three years.  “Silver is about to enter a sustained bull market that will take the price from the current level of $32 an ounce to $165 an ounce and we expect this price to be hit at the end of October 2015,” he predicted.

Williams notes that the re election of President Obama guarantees the continued U.S. policy of quantitative easing, which contributes to the fundamentals of a rise in silver prices.
by David Peterson

Indian Gold Purchases Rise Despite Expectations

The weak rupee didn’t deter Indians from hitting the jewelry shops in larger than expected numbers as the traditional holiday season started. Not only were gold sales greater than expected, despite prices hitting a five-year high, but silver saw a much stronger presence in shoppers’ bags than usual.

It could be that inflation in India, which stood at 9.75% for October and is rising, added to the traditional holiday demand.  Those who could not afford gold this year apparently opted for silver instead of sitting out the buying season. Whether from changing fashion or the price of gold, jewelers report that lighter weight bracelets and other jewelery is more popular this year than the traditional heavy designs.