How Cheap Are Gold Stocks Relative to Bullion? [View article]
"""why not then just buy low cost production, like GG, or perhaps AUY? I am not sure why or how their margins are better,""""
Almost all the mining companies play a hocus pocus game, where they pretend to be a pure miner of one metal.
In reality they dig up a ton of ore and get a bunch of metals. Then they sell all but one and use those profits to offset their costs, And then the one chosen metal is said to be practically free.
Take FCX: they claim to be a copper mine, and they claim their New guinea mine produces copper for about 5 cents a pound.
BUT, they make a fortune selling gold and silver from that mine and claim they make zero from the those metals.
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"""why not then just buy low cost production, like GG, or perhaps AUY? I am not sure why or how their margins are better,""""
Mar 31 01:33 am
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All Comments by jimmy46 »How Cheap Are Gold Stocks Relative to Bullion? [View article]
Almost all the mining companies play a hocus pocus game,
where they pretend to be a pure miner of one metal.
In reality they dig up a ton of ore and get a bunch
of metals.
Then they sell all but one and use those profits to
offset their costs,
And then the one chosen metal is said to be
practically free.
Take FCX: they claim to be a copper mine, and
they claim their New guinea mine produces
copper for about 5 cents a pound.
BUT, they make a fortune selling gold and silver
from that mine and claim they make zero from
the those metals.
It's just an accounting/public relations game.