Imagine, it is nearing the end of the Great Depression, there is finally work for many who have been unemployed. Gold mining camps are opening up in many regions of rural Canada. Gold prices are up adding to the fever pitch.
Enter WWII gold mines in the United States were ordered closed by the government as they were deemed "unnecessary" and because Canada was allied with the U.S., the "lend - lease" treaty made gold mining non-critical in Canada, as well. Investors pull their money out to invest in base metal mining for the war machine.
Mining companies grab the visible gold, fill in some of the shafts, fence off the rest and walk away from their sinking businesses. The few gold mines that did remain in Canada, closed when gold prices hit "rock bottom" - approximately $35/troy oz USD in 1968.
Fast forward to 2006, gold stock is rising, investors are once again willing to take the plunge in the "shiny yellow rock". Mining companies are combing areas once known to produce it. Small towns that were built around the pre-war "golden era" and the rail lines and thrived due to a boom in the now floundering forest industry, are again able to see the light of a new hope.
So many have already walked away in this new recession, seeking employment elsewhere, some have pulled up stakes, sold their homes at great loss to move out west and work for the oil producers.
Those who remain, are pinning their hopes an these gold seeking companies, hoping and praying that the "yellow nuggets" hold out at a high price in the ever fluctuating commodities market and that the investors stay excited about the mining industry.
If things work out well, there may be a few less "ghost towns" to reminisce about. If not then you may very well see a story entitled "Death of a Small Town", sometime in the future.

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