GOLD MINERS NEED MORE THAN A HIGHER GOLD PRICE. ⛏️🟡
They also need costs under control.
Trump says he reached a deal with Putin to bring more Russian diesel into U.S. and global markets, aiming to ease fuel prices.
Meanwhile, reports suggest Russia is increasing purchases of gold and foreign currency beyond its original plan. The figures behind that claim still need confirmation.
Here is the angle I’m watching:
Gold miners sell gold, but they spend heavily on fuel to extract it.
If gold stays firm while diesel becomes cheaper, miners could earn more from each ounce they produce—even without another sharp gold rally.
That is why the gold-to-oil ratio matters.
A rising ratio means gold is becoming more valuable relative to oil. It can signal a better environment for mining margins, although diesel prices, wages, ore quality and company execution still matter.
My view: this creates a potentially supportive backdrop for gold miners. But a supply announcement needs to translate into actual deliveries and lower operating costs.
For traders, the next question is whether earnings improve enough to justify the price already paid for mining stocks.
Would you rather hold gold itself, or own the companies digging it out of the ground?
They also need costs under control.
Trump says he reached a deal with Putin to bring more Russian diesel into U.S. and global markets, aiming to ease fuel prices.
Meanwhile, reports suggest Russia is increasing purchases of gold and foreign currency beyond its original plan. The figures behind that claim still need confirmation.
Here is the angle I’m watching:
Gold miners sell gold, but they spend heavily on fuel to extract it.
If gold stays firm while diesel becomes cheaper, miners could earn more from each ounce they produce—even without another sharp gold rally.
That is why the gold-to-oil ratio matters.
A rising ratio means gold is becoming more valuable relative to oil. It can signal a better environment for mining margins, although diesel prices, wages, ore quality and company execution still matter.
My view: this creates a potentially supportive backdrop for gold miners. But a supply announcement needs to translate into actual deliveries and lower operating costs.
For traders, the next question is whether earnings improve enough to justify the price already paid for mining stocks.
Would you rather hold gold itself, or own the companies digging it out of the ground?