Mining success is not measured in ounces and dollars but instead by healthy margins, argues Robert Cohen. In this interview, Cohen declares that investors should seek out projects that will earn profits of 20%–35%, regardless of size, and takes us on an around-the-world tour of companies that hit this sweet spot.
After a spike in flake graphite in 2011, have prices finally reached bottom? Ron Struthers believes so. In this interview, Struthers talks about how market psychology and fundamentals may play out in the graphite and rare earths spaces as new mines inch toward production.
The only thing that’s free right now is the air that we breathe. Other than that it costs to manufacture every object and commodity in the world. There is also a certain cost to producing an ounce of gold. It doesn’t grow on trees.
It will be the miners who are still undervalued and have growth potential that will really benefit from this next round of QE and rising gold prices. Expect to hear more stories about investments coming to the mining sector.
What we are seeing here is a classic war between the fundamentals and liquidity, and liquidity is winning. Ben Bernanke and his central banker friends around the world have orchestrated a crescendo of printing presses that have kept the hopium coming and stock prices rising.
Commodity prices are pushing higher amid a broad-based recovery in risk appetite. Growth-geared crude oil and copper are following shares higher while gold and silver are on the upswing as ebbing haven demand weighs on the US dollar.