SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: jennifersilversun who wrote (2251)11/24/2005 3:05:45 PM
From: tyc:>  Respond to of 78408
 
You ask "what does 2k for an oz of gold imply for gold stocks?"

If the rate of inflation is so high that it causes gold to increase to "2k per oz", what happens to mining costs ? Perhaps the mines still don't make a profit because the price of gold will not have kept pace with mining costs.

e.g. River Gold tells us in their last quarterly that since their mine opened ten years ago costs have increased 50%. Gold was C$520 per oz then, and it was C$520 per ounce in the last quarter. (currently about C$575, i believe)



To: jennifersilversun who wrote (2251)11/24/2005 11:07:05 PM
From: SwampDogg  Respond to of 78408
 
<<There is one school of thought, admittedly a minority but not trivial one, that thinks the unfolding scenario of high inflation and an imploding stock market would be a stampede toward the metals but not necessarily the equities>>

I guess the prospect of being a shareholder in a company making $billions of cash flow a year would be unattractive? Perhaps a 50% dividend may boost the equity prices. That school of thought is goofy.


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News