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Gold Stocks

24

Comments

  • wombat42_2
    wombat42_2 Posts: 1,312 Forumite
    Bump Bump Bump
  • I,_Brian
    I,_Brian Posts: 191 Forumite
    wombat42 wrote: »
    Tosh. Ever heard of China and the comodity supercycle ?

    I'm looking at markets now, and don't see as huge demand for gold - price of gold has barely risen over the past month since equities began to collapse - there's only limited demand.
    wombat42 wrote: »
    Gold has to be at least about $800 to make it worthwhile for Gold Producers to do any mining at all.

    It didn't go over $800 until last summer after the credit crunch first hit and the flight from financial stocks. So how did they make money before?

    Or are you saying there's no real profit in gold mining companies, so how would that relate to the original thread claim of a massive boom coming in gold mining stocks?

    Economic downturn = reduced demand. Supply and demand is a far more entrenched economic truth than a commodity supercycle.

    Just my 2c, though. :)
  • wombat42_2
    wombat42_2 Posts: 1,312 Forumite
    I,_Brian wrote: »
    I'm looking at markets now, and don't see as huge demand for gold - price of gold has barely risen over the past month since equities began to collapse - there's only limited demand.



    It didn't go over $800 until last summer after the credit crunch first hit and the flight from financial stocks. So how did they make money before?

    Or are you saying there's no real profit in gold mining companies, so how would that relate to the original thread claim of a massive boom coming in gold mining stocks?

    Economic downturn = reduced demand. Supply and demand is a far more entrenched economic truth than a commodity supercycle.

    Just my 2c, though. :)


    $600 is only a rough figure and varies from producer to producer. $600 or $700 may be more accurate. Production costs have gone up in particular in the last 12 months with oil prices etc.

    China and other BRIC countries are still growing at a rapid pace so the demand is still there.
  • purch
    purch Posts: 9,865 Forumite
    The other 2 things that need to be in place are Inflation being higher than it was 12 months ago, and Long Term Treasury yields being Lower than they were..............both of which appears to be true also.

    The Gold/XAU ratio is at 8.41 (according to Kitco) at the moment :eek:

    Something has to give !!!!
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • wombat42_2
    wombat42_2 Posts: 1,312 Forumite
    Gold Up Nearly 4% Today !
  • purch
    purch Posts: 9,865 Forumite
    price of gold has barely risen over the past month since equities began to collapse

    It's up 10.25 % in the last month
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • wombat42_2
    wombat42_2 Posts: 1,312 Forumite
    Bump Bump Bump
  • wombat42_2
    wombat42_2 Posts: 1,312 Forumite
    Bump Bump Bump
  • purch
    purch Posts: 9,865 Forumite
    Would anyone think it was a good idea to sell all my Gold holdings, and stick the ££ in an account with an Icelandic Bank ????
    'In nature, there are neither rewards nor punishments - there are Consequences.'
  • wombat42_2
    wombat42_2 Posts: 1,312 Forumite
    Bump Bump Bump
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