Gold Stocks - Where Are The Profits?
I look at the balance sheets of the gold mining companies and I have to just scratch my head. Where are all the profits? Gold is up 9 years in a row, right? So how come you have paid in capital of billions and billions and retained earnings of little or nothing? This is for gold stock after gold stock. I can't find many that look anything like a legitimate business which earns a profit from operations. They are great at selling shares to the public, but when it comes to making money digging yellow metal out of the ground, there is little or nothing to show those shareholders. If someone can find a pure gold mining stock that has more retained earnings on the balance sheet than paid in capital, I would love to see it. This whole industry just stinks by any reasonable measure of business success other than share price, and if they don't have retained earnings after nine good years in a row, what will happen when they get the inevitable bad years? I find it ironic that people supposedly buy gold stocks for safety and they load their portfolios with these junky time bombs.