Yet another reason to own physical gold and silver

Not only do we have a high probability of ETF and COMEX defaults now we have new legislation that could destroy precious metal mining companies in the US. Why carry risks? Physical bullion in your possession is the only asset that is no one else's liability.

The US congress is proposing new very restrictive mining regulations like yearly inspections and a whole gamut of new regulations specifically on precious metal miners....in the name of the environment... it's hard to say the effect on big US mines, but the smaller ones will have lots of trouble with this if it gets through.

Rahall Proposes Bill to End All Mining in the U.S.
by Scott Harn

Nick Rahall, chairman of the House Resources Committee, reintroduced mining reform legislation in the House of Representatives on January 27, 2009. The Congressman has obviously been away from real work for far too long. H.R. 699, the Hardrock Mining and Reclamation Act of 2009, should be labeled H.R. 666 because it appears to have been written by the Devil himself. If it passes as written, it will completely destroy an entire industry.

H.R. 699:
• Casual use would be redefined to allow only those activities that do not cause "any disturbance of public lands and resources." The collection of samples, use of gold pans and non-motorized sluices would be the only activities allowed without a Notice or Plan. Taking a vehicle off-road would also require a Notice or Plan. Any extraction of minerals for sale or use would require a Notice or Plan.
• H.R. 699 would be retroactive. Existing mining that is not already operating under a Notice of Plan would require proof of a valuable discovery to retain a mining claim, and those operating under a Notice or Plan would have ten years to bring their operation under compliance with the new regulations.
• The patenting of mining claims, which has been suspended by yearly legislation since 1994, would be permanently discontinued.
• The federal government would be entitled to an 8 percent gross royalty for all locatable minerals for any new mining operation.
Link to article...

Even if the miner is unable to make a reasonable profit at current commodity prices, he would have to give 8 percent to the federal government. Existing operations at the time the bill is passed would be subject to a 4 percent gross royalty, and any federal lands added to the operation after enactment of the bill would be subject to the 8 percent royalty.

The reporting requirements are absurd. Anyone transporting a locatable mineral, concentrate or product derived from a locatable mineral shall carry documentation declaring the amount, origin and intended destination. Miners shall create and maintain reports relating to the quantity, quality, composition, volume, weight and assay value of all minerals extracted from a mining claim. Failure to produce these reports when requested by any officer or employee designated by the federal government may result in involuntary forfeiture of the mining claim. ..."