mr_larry
Hero Member
- Jun 22, 2010
- 504
- 169
- 🏆 Honorable Mentions:
- 1
- Detector(s) used
- Minelab Explorer SE Pro
- Primary Interest:
- Metal Detecting
On the report they were interviewing the CEO of Barrick Gold (ABX NYSE). The interviewer was asking if gold prices are in bubble range. The CEO said that gold reached its peak in 1980, when adjusted for inflation in today's dollars, gold was trading at $2380 per ounce. He also compared the price of gold today against other commodities such as copper and oil and that an ounce of gold will buy about 15 barrels of oil and X number of ounces of copper, which is in line with historical averages.
The bottom line is that gold is priced at fair value considering historical averages.
One other thing of note: Barrick Gold makes just slightly less than $1,000 profit on every additional ounce of gold they pull out of the ground when combined with their copper mining activities.
Edited to correct/change: The profit of nearly $1000 per ounce of gold, is on every additional ounce they recover after they reach the break even of covering all of their costs.
The bottom line is that gold is priced at fair value considering historical averages.
One other thing of note: Barrick Gold makes just slightly less than $1,000 profit on every additional ounce of gold they pull out of the ground when combined with their copper mining activities.
Edited to correct/change: The profit of nearly $1000 per ounce of gold, is on every additional ounce they recover after they reach the break even of covering all of their costs.
