Post by
nozzpack on Dec 06, 2023 11:17am
Oil Price is collapsing which is good
One of the main reasons why gold stocks have not yet followed record high gold prices is that very high oil prices due wars has driven inflation through the roof, hence developing a mine has become very expensive which impacts IRR and profit margins .
Oil prices were in the $90 range a few months ago.
Today, oil prices dropped nearly $2 per barrel to $70 per barrel which is where it was pre 2019.
As a consequence , inflation is rapidly declining which means the FED begins cutting rates which is positive for POG.
Also, the current updating of the HD FS will benefit from these lower oil prices..