Nevada Gold Mines, a joint venture between Barrick and Newmont, produces most of the gold mined in Nevada. The Cortez mine is one of the largest in the venture.
Gold prices have seen a significant rise over the past few years. In August 2020, during the uncertainty of the pandemic, gold hit $2,000 per ounce for the first time.
Over the next four years, it mostly stayed around $1,800. However, prices began climbing steadily in early 2024, reaching $2,800 by late October.
After a brief dip following the election, gold’s upward trend continued, breaking the $3,000 mark for the first time on Friday. On Monday, gold closed at $3,009.
Gold has long been considered a safe investment during times of economic uncertainty. It’s seen as a strong hedge against inflation since its value tends to rise when the purchasing power of the dollar declines.
In February, the U.S. inflation rate was 2.8%, down from the previous month and well below the 9% peak seen in the summer of 2022.
However, concerns over inflation have resurfaced due to Donald Trump’s tariff policies and the global uncertainty they create.
At the same time gold prices reached record highs on Friday, U.S. consumer sentiment took a sharp downturn.
Nevada is home to some of the largest gold mines in the world, with most of them operated by Nevada Gold Mines. If Nevada were a country, it would rank fifth globally in gold production, behind China, Russia, Australia, and Canada.
Nevada has two mining-related taxes based on the value of minerals produced.
For the fiscal year ending June 30, 2024, the net proceeds of minerals tax generated $133 million, while the gold and silver excise tax brought in $71.8 million.
Gold typically accounts for around 90% of the total value of minerals mined in the state. In 2021, about $8.5 billion worth of gold was mined in Nevada.
After $5 billion in deductions for extraction and other costs allowed under state law, the net proceeds tax was applied to $3.5 billion, generating roughly $172 million in state and county mining taxes.
As consumers and businesses face financial uncertainty, state lawmakers are also uncertain about future state revenue. Higher gold prices and increased mining tax revenue could help ease potential budget shortfalls if the economy slows down.
However, details on mining production values and deductions are no longer publicly available, according to the Nevada Department of Taxation.
A hearing on legislation to reverse this decision and make production and deduction data public is scheduled for Tuesday afternoon.
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