The Effect Of The Increase In Gold Price On Mine Workers

But if the gold price rises by 20 to 1,200 the mine will make 400,000,000 overall. This demonstrates a gearing effect of 4 times - i.e. for a rise in bullion of 20 the share will rise by the 20 plus another 4 times 20, i.e. 100 all other things being equal, which they rarely are. ... These can increase the production costs of gold ...

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