Gold production costs increased profits. In fact they are always high at all times. This means that in some mining companies the cost of producing gold and gold is too high to produce profits on the current gold price. So, what do you have to do?
Gold production costs are undoubtedly the most important for gold investors. After all, we really have to understand the value of the goods, we need to know how much the production is. For wise commodity investors this is like a dream when the cost of producing a commodity will be higher than the state price because investors can buy goods at a low price for a limited period of time before supply drops and rising demand eventually results in price increases. This is fundamentally unreasonable at retail prices for cost.
In other words, given the high cost of producing gold, we in the middle have a great opportunity to buy the metal at low prices. If production costs continue to rise, less gold is mined, simply because companies can not earn profits. If there is little gold, demand will increase and, ultimately, the price (and value) of gold.
Another factor is the concept of newly mined gold. Most gold was mined, because the rest have been bought. Therefore, if production stops, then the only gold available on the market is gold that is already owned by others, which in turn leads to a higher rise and price. This will be the seller's market.
So, what are the costs for golding right now? Depending on the company, mining costs can range from $ 1,000 to $ 1,400 per ounce. Since gold was estimated at $ 1284 for 13 November 2013, we can see that many companies are struggling to maintain production costs compared to the gold price.
Keep this in mind and use this development for your own personal benefit. The window of opportunity to invest in a commodity, if its price is lower than the cost of manufacturing, is small. Many mining companies have stopped production. If we continue this trend, we will probably see near-rising demand and prices in the near future.
For four consecutive days, after yesterday's afternoon, in the mirror of Janet Yellen's vice president of the Federal Reserve Board, short gold coats came in. The most important remarks were:
– The US economy and jobs are as short as possible
– Unemployment is too high due to a 2% absence of inflation
– The economy needs to improve before the Fed reduces stimuli
The USD was booked against a basket of currencies while the euro and gold were higher. The night section was largely gentle, but this morning, in New York, he was reborn with Yellen's testimony this morning. Gold jumped to $ 20 before finding a resistance before $ 1,300. In case you do not reach the value of $ 1,300 in the short run it is difficult to find too much gold. Working against the yellow metal on the base side, some news from India. The World Gold Council noted that gold imports into India fell to the lowest level in the third quarter in more than four years. This is largely attributable to the escalation of government tariffs with the aim of halting Indian demand for gold. The silver offered after five consecutive slopes, but it would be nice to follow the gold lower if it turned south. We are interested in selling American Mint in US Mint at nearly 40.2 million ounces a new record in 2013.
Source by sbobet