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Re: ImOnABoat post# 17719

Sunday, 07/03/2016 2:20:19 PM

Sunday, July 03, 2016 2:20:19 PM

Post# of 55227
Why you Might choose to own Gold Miners Stocks..
Of course, there's a catch: 

In theory, therefore, when gold prices rise, the gold miners should appreciate even more, because each dollar gain per ounce has a higher-percentage impact on the miners' profitability. Should gold rise from $1,000 to $1,010 per ounce, gold owners realize a gain of 1%, but a gold-mining company with a $400 cost of production would see its profit per ounce rise by 1.66%. That's why many investo
rs favor miners over gold bullion when they want to gain exposure to an expected rise in metal prices. Of course, the reverse is also true: When gold declines in price, the loss in economic value is amplified for the mining companies.

https://www.foolfunds.com/insights/gold-or-gold-miners/
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