Currency Effect on Mining Stocks
The prices of metals in the currencies of countries that mine the commodities can vary considerably from prices commonly quoted in the press, most of which are denominated in US dollars. Ultimately, it’s the price of the metal in the domestic currency that’s of importance to the metal miner. As such, the dollar exchange rate is a crucial aspect in determining the profitability of a mining company that sells a product internationally.
Metal prices have been going down almost across the board, coupled with the currency rates where they are, this once again reminds me of the 1970’s. Was this year a very bad time to get into (and stay in) the mining stocks?