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Gold will go $10,000 US per ounce & much more soon .
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<blockquote data-quote="BigWave" data-source="post: 513794" data-attributes="member: 6786"><p>My thinking:</p><p></p><p>It's generally better to buy shares in a proven gold producer than gold itself when the price of gold is likely to rise.</p><p></p><p>i.e.: If gold is currently at $1,200/oz and it costs a company $1,000/oz to produce, then their profit per ounce is $200 or 20% ($200/$1,000).</p><p></p><p>Now, if gold rises from $1,200/oz to say $1,400/oz (a 17% increase), and it still costs the company $1,000/oz to produce, then their profit has risen to 40% ($1,400/$1,000). More than doubling their profits, whereas gold only rose by 17%.</p><p></p><p>Yes, their taxes will rise, but so likely will be their efforts to expand and produce more.</p><p></p><p>Of course, the opposite it true if the price of gold falls. But if you believe in gold surging, then it would make more sense to buy shares in a proven gold producer than buying gold itself IMHO.</p></blockquote><p></p>
[QUOTE="BigWave, post: 513794, member: 6786"] My thinking: It's generally better to buy shares in a proven gold producer than gold itself when the price of gold is likely to rise. i.e.: If gold is currently at $1,200/oz and it costs a company $1,000/oz to produce, then their profit per ounce is $200 or 20% ($200/$1,000). Now, if gold rises from $1,200/oz to say $1,400/oz (a 17% increase), and it still costs the company $1,000/oz to produce, then their profit has risen to 40% ($1,400/$1,000). More than doubling their profits, whereas gold only rose by 17%. Yes, their taxes will rise, but so likely will be their efforts to expand and produce more. Of course, the opposite it true if the price of gold falls. But if you believe in gold surging, then it would make more sense to buy shares in a proven gold producer than buying gold itself IMHO. [/QUOTE]
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General
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Gold will go $10,000 US per ounce & much more soon .
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