Honest Strategies for Mining Stock Speculation: Brent Cook via CEO.ca
Honest Strategies for Mining Stock Speculation: Brent Cook via CEO.ca
Precious Metals and Natural Resource Investing
Precious Metals and Natural Resource Investing
Honest Strategies for Mining Stock Speculation: Brent Cook via CEO.ca
Precious Metals and Natural Resource Investing
I’ve heard Brent talk about “leverage” on optionality plays that don’t work at current prices such as ITH, WRN, and SEA. What I don’t understand is that Brent asserts that they won’t make money at higher gold prices because of the inflationary pressures on their input costs. If that’s true then it should be true that economic projects at today’s gold price should have their current margins remain consistent because of those same inflationary pressures. Thus rendering “leverage” a fallacy? Please elaborate as I don’t get it.
Kind regards,
Lenny Graceffo
#1711-10130 117 St
Edmonton, AB
T5K-1X4
780-297-7673
Any forecast has assumptions inherent in it. We can assume but do not necessarily know how high input costs will rise when gold also rises. Generally speaking, I believe input costs will not rise as much or as fast as the gold price if we see a strong bull market re-commence unless there is a wide-spread hyper-inflationary situation. But in a hyper-inflationary situation the price of gold will still rise faster than the input costs I would think as people run to try and preserve their purchasing power by buying gold. Just study how WRN, ITH and VGZ did in the first six months of 2016 to see how optionality plays will respond to a gold bull run and you will see it’s worth putting some of your portfolio in optionality plays. Thanks for commenting.