Hitch up you wagon the gold rush is on in Elko, Nevada. But you are probably asking: "Are people actually going to Elko to mine for gold? Not really, but there are gold mines in the Northeastern mountains of Nevada and the mines there are thriving. With the price of gold at about $800.00 per ounce, mining companies are running at full capacity. Barrick Gold Corp (NYSE: ABX) has added 250 people and expects to hire an additional 300 jobs to its workforce of over 3500.
So what happens when a town like Elko is booming? Mining companies are keeping the construction industry humming. Barrick and Newmont Mining Corp (NYSE: NEM) dominate the industry, and are building a 50,000 square feet office building. The Elko Diversification Authority started construction on a $14 million dollar "railport" that will house six new industrial tenants and create about 1400 jobs. Taxable sales rose .5% in January compared with a 12.9% drop for all of Nevada. Housing prices are down but only by 8.9% compared with a 17% drop in Las Vegas. Sales of GM vehicles were down only 25% compared with a sales drop of 40% nationwide.
Naturally word of the Ellko phenomenon is spreading and job seekers are pouring into Elko. Mining companies are processing about 600 applications a week.
By contrast, six months ago jobs went begging and Elko County Economics Diversification Authority had to take out Billboard ads along the highways advertising jobs.
Do you think it would be possible to develop more Elkos throughout the country around growing industries?
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Reader Comments (Page 1 of 1)
4-10-2009 @ 10:24PM
ij70 said...
I hear there is gold in California... once the miners show in force, the Greenies are gonna go nuts!
Did they mine out gold in Alaska or is there some still left?
4-11-2009 @ 11:41AM
Kent said...
Good stuff for NV and the nation. We are the 4th richest nation in gold. Break-even point for mining gold is between $350-450; so, with gold prices today near the $900 mark, it is a profitable venture. Nevada exempts taxes on mined gold, but doubt that will last if the current trend continues. State needs the money.
5-08-2009 @ 12:53PM
Wolfgang Drude said...
Don't need stock quotes or news about how great the gold industry is for Nevada. I need to know who's hiring and how to get ahold of them. Anyone out there with that info?