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Article: Using the sales comparison approach to value precious metal minerals.
- Article from:
- Appraisal Journal
- Article date:
- July 1, 1998
- Author:
CopyrightCOPYRIGHT 1998 The Appraisal Institute. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Precious metals fluctuate in price, just as other commodities do. When metal prices are reasonably high, ores such as silver, gold, lead, copper, and zinc are acquired in real property form as future mining possibilities. From time to time, it is necessary to value some of these properties for, among other reasons, acquisition for public projects, corporate resource inventory, environmental objections to mining, and litigation between parties. Environmental objections, even if uninformed, are sometimes so powerful that the government has to step in and offer the mining company a land trade.
Valuing working mines is most often the province of geologists and mining ...