Premium Exploration's John Ryan Talks Gold Mining

John Ryan, Chief Executive Officer of Premium Exploration PMMEF, might have gold and silver running through his veins.

With over 20 years of experience in mining operations, he is back home in Idaho, where he graduated from the University of Idaho with a degree in Mining. After that, he earned a law degree from Boston College. He also served as an officer in the United States Navy.

Ryan is very bullish on gold mining in Idaho, which is where Premium Explorations is concentrating its efforts.

In a phone interview, he pointed out that the first gold rush in the United States "...was in North Carolina, which resulted in the 'Trail of Tears.' After gold was discovered in California, emphasis shifted to Idaho in the Boise Basin area. The Buffalo Hump was the underground lode."

Idaho is a great state, overall, for gold mining, Ryan explained.

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"The government of the state is pro-mining. That adds to the premium that exists for gold and other resources in North America. The trend is for investors to now focus on North America. You can certainly see that with the Chinese, who are very active in Canada in the uranium sector, for example. This makes Premium Exploration very attractive to a bigger company."

The policies of central banks around the world make gold firms like Premium Exploration even more appealing, according to Ryan.

"The Federal Reserve is leading the largest money creation binge in history. That naturally results in concerns about inflation and the long-term value of paper currency as an asset. Many investors are ignoring signals about the viability of quantitative easing. But not the Chinese, which is why they are buying up so much gold in an effort to diversify their asset base."

In 2013, the Chinese bought the most gold of any year in history.

Due to the rising demand for gold, SPDR Gold Shares GLD are up around 13.50 percent for 2014. Barrick Gold ABX, the biggest gold company in the world, has risen more than 15 percent this year. As happens so many times, small caps like Premium Exploration will trail the sector as investors pile into the larger holdings.

When positive news develops, that can result in the stock price going much higher, must faster.