Mining, Ski Slopes and Condos: Buying Real Estate in the US with Silver in Mind

Buying silver? Interested in buying real estate? This article will take a look at buying real estate in the US with silver in mind.

Gold and silver mine output in the US has been dampened by at least a few smothering events in the nation’s history:  the demonetization of silver, 1873; gold and silver nationalization, 1933; and finally environmental regulations under the Environmental Protection Agency.  With the transition to a 100% fiat currency standard in 1971, interest in precious metals as a hedge against command-and-control fiat started to blossom. 

Gold and silver have become an investment for approximately 3 million people in the United States, and a great many of these individuals are also interested in investing in real estate; that is, in Earth. It is natural and logical to desire “investing” in land, for the Earth has been the pan on the stove of the sun, resulting in the conditions for life, for an exquisitely long time.  One of the main vehicles by which one can buy land is through real estate. But, the prices of houses being manipulated, it is difficult to judge the guidelines by which one should buy a house.  When? Where? Seem to be the lingering questions.

For a goldbug or silverfish, who also has an interest in and means to investing in Earth, there are many things to consider in regards to buying land.  One of the first things many consider is whether or not to buy in the US or outside. For the purposes of this article, we will focus on real estate in the US. How we will judge its value is its proximity to active or potentially active silver mines.

The following day will present a piece analyzing land by its proximity to active or potentially active gold mines.  After that, we will look internationally.

Having begun in a considerable way after the discovery of the Comstock Lode in Nevada in 1858, silver mining has an intimate history with the US political system. The industry suffered greatly during demonetization of silver in 1873.  In 2007, the US mined 1,200 metric tons or 35% of the silver it consumed (meaning, either used or took off the market).  That year, thirty-six US mines reported silver production.

Assuming a long-term secular bull market in silver, wouldn’t living in the region hedge one against a poor job market?

There are many things to consider while considering real estate, and that silver is mined in proximity is merely one. But, there are at least a few locations in the US where silver mines are found in habitable and beautiful places, with all of the comforts of modern commerce.  Here is a consideration of the options:

Alaska

Alaska has been repeatedly the nation’s leading silver producing state. The Red Dog Mine, the world’s largest source of zinc, also produced 2.4 million troy ounces of silver.  But, the Red Dog Mine is located in a region devoid of towns and cities due to its Arctic conditions.

Alongside the Red Dog Mine, the Greens Creek Mine produced 8.9 million ounces of silver.   The Greens Creek mine is a large, underground silver mine located in Southeast Alaska, about 15 miles south of Juneau.  It is the 5^th largest silver producer in the world, and the largest in the US.  In 2009, the mine produced 7.5 million ounces of silver and 67,000 ounces of gold. The payroll from the mine in the Juneau Borough is approximately $26 million over 270 people.

Right now you could buy a three story cabin on nearly 6 acres of property for the price of $649,000 in Juneau, Alaska.  Four bedroom homes range from $100,000 to $400,000.

Idaho

Couer d’Alene (Silver Valley) in Shoshone Country, northern Idaho has produced more silver than all other mining district in the United States. Historically, it is one of the top three silver districts in the world in total silver produced.  The region is the richest primary silver producing mining region in the world.  The mining districts’ center, Wallace, earned the title of Silver Capital of the World decades ago.  Through 2006, Couer d’ Alene produced a total of more than 1.2 billion ounces of silver.

The three silver mines now operating there are the Galena Mine, the Sunshine Mine and the Lucky Friday mine.

The population of Shoshone County was under 13,000 in 2010. The population of the Silver Capital, Wallace, was under 1,000 in 2010.  In the town of Wallace, ID, you can buy a 4 bedroom, half-acre home for $169,000. It is being revived, this town, considering the uptick in mining operations due to rising metals prices. The town was making the transition from historical mining town to ski slopes and condos. Now, it is a bit of both with the added bonus of current production.

Montana

Butte, Montana is the second-greatest source of silver in the US, second only to the Coeur d’Alene district in Idaho.  Silver veins at the mine have been mined since 1874.  In 1882, large copper veins were discovered, and since then silver has been mined as a byproduct. Butte produced more than 702,000 metric tons of silver through 1990.

In 1864, silver was found at Phillipsburg in 1864 and the district was among the most prolific producers of silver in Montana. The major mines included the Granite Mountain mine, the Bi-Metallic mine, and the Hope mine.

Butte’s population was 34,200 in 2010. You can buy a four bedroom home there for about 150,000.

Nevada

Silver mining in the US began in Nevada, and its nickname is “the Silver State.” Silver is mined in many parts of Nevada, in particular in the north, but not at the capacity of other states on this list.

In my opinion, Idaho and Montana seem like the best options for investment or living if one were to base their location on productive silver mines.  But, there are many states in the US where silver has been produced in great quantities, but today is not for whatever reason. These include:

• California (I recommend towns and cities within the “State of Jefferson”)
• Colorado (Victor, Colorado (pop. 445) sits next to a mine gowned by AngloGold Ashanti, a criminal organization exploiting workers and destroying the environment without recompense.
• Missouri (the Einstein Mine)
• New Hampshire
• New Mexico (southwest New Mexico)
• North Carolina
• Oklahoma (Garvin County)
• Oregon (Baker County)
• Texas (Presidio County)
• Utah (outside of Salt Lake City)
• Virginia
• Washington (Stevens County)

The most attractive locations for living and investment in the US where silver is produced are in the Pacific Northwest region. Idaho and Montana are the obvious options, with towns like Wallace, Idaho and Spokane, Wa. both within driving distance of respective mining towns.  East of the proper PNW region, Butte, Montana also offers a intriguing possibility. Oregon and Washington are beautiful locations as well, and although there is not much produced in those states today in terms of silver, one can be sure there is much silver in those hills.  A kaleidoscope of abundant resources makes the Pacific Northwest an attractive place to live, silver or no silver.

Top places to relocate with silver in mind in the US:

1. Wallace, Idaho

2. Butte, Montana

3. Spokane, Washington

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