Online:
Visits:
Stories:
Profile image
By silveristhenew (Reporter)
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Gold Mining Becomes Profitable Thanks To Oil Price Implosion | John Rubino

Saturday, February 14, 2015 11:43
% of readers think this story is Fact. Add your two cents.

(Before It's News)

John writes, a few years ago (when the world was very different) veteran mining analyst Jay Taylor told me something that seemed counterintuitive: Deflation can actually be a good thing for the gold and silver mining business — if the prices of mining inputs like oil fall faster than the price of precious metals.

In other words, it’s not inflation or deflation per se that matter, but the distribution of price trends. “With quantitative easing,” said Taylor, “the liquidity being pumped into the system has caused energy and labor costs to rise, which has more than offset higher precious metals prices. Historically, the miners have actually done better in a deflationary environment in which gold and silver are seen as monetary metals and the cost of getting them out of the ground declines due to lower energy and labor.”

So the relationship of gold to the rest of the commodities complex is a good indicator of the mining environment. Gold might be down, but if it’s relatively strong, the mining equation is favorable. Today it’s improving.

This video was posted with permission from http://FinancialSurvivalNetwork.com
—————————————————————————————
FINANCE AND LIBERTY:
SUBSCRIBE (It’s FREE!) for more ►http://bit.ly/Subscription-Link
Website ►http://FinanceAndLiberty.com
Like us on Facebook ►http://fb.com/FinanceAndLiberty
Follow us on Twitter ►http://twitter.com/Finance_Liberty
Google Plus ►http://Gplus.to/FinanceLiberty



Source: http://silveristhenew.com/2015/02/14/gold-mining-becomes-profitable-thanks-to-oil-price-implosion-john-rubino/

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.