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The Banking System Will Have To Be Rescued | Alasdair MacLeod

Wealthion - Be Financially Resilient

CHAPTER

The Risks of High Yields

A miner is making a hundred dollars in profit when gold is 1900 dollars an ounce. So if the price of gold goes up by another hundred dollars, so it goes from 1900 dollars to 2000 dollars an ounce, right? What that's like a 6%. Well, all of a sudden that miner, if it's costs indeed remain the same, is now making 200 dollars of profit off the gold per ounce off the gold that pulls out of the ground. Its profit has actually increased by 100%. It's doubled. That's the type of operating leverage we're talking about, John. Yeah, certainly there are some variable costs in these operations,. There's a very large fixed cost component that doesn

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