This is why I'm holding...Right now is the absolute ideal environment for gold mining companies to deliver record profits
Today's message is incredibly simple... But it could make you a lot of money.
Right now is the absolute ideal environment for gold mining companies to deliver record profits.
Let me explain why...
Like any business, gold mining companies have sales and expenses. Some people say mining is a terrible business, because you can't control the price of your sales or the price of your expenses. But fortunately, today, the prices of both are seriously in the favor of mining companies...
Gold miners sell gold, of course. So when the price of gold goes up, sales go up.
The crucial expense for mining companies is the cost of fuel... In short, it costs a fortune in fuel to feed the machines that move the earth to get to the gold. When the price of fuel goes down, gold miners' expenses go down.
Fortunately for gold miners these days, the price of gold is up dramatically... and the price of fuel is down dramatically. Take a look:
These dramatic changes in the price of gold and the price of oil benefit gold mining companies dramatically. But since May, the price of gold mining companies is flat. Take a look:
In short, because the price of gold is up and the price of oil is down, gold mining companies should set all kinds of quarterly earnings records in the third quarter of 2011.
Record earnings in gold mining companies should help propel their stock prices.
Yet you have the opportunity today to buy into gold mining companies at May 2011 prices, before the spike in gold and the crash in oil.
Take advantage of it.