Charlie Gibson, joined Tip TV to discuss the tumbling commodity prices - Oil and the precious metals.
Key points from the video
Rio Tinto (LONDON:RIO) historic and Forecast EPS 2000-present
Rio Tinto historic PER, 2000-2015
Commodities supercycle ending?
USD and Gold
Best time to buy Gold
Share Price Performance – Mining Majors
Gibson highlighted the performances of Randgold (LONDON:RRS) and Rio Tinto, with Randgold resources outperforming the gold price, whilst the later was the still underperforming iron ore. Rio Tinto have halved their earnings forecast for this year, and Gibson noted on their share price, which came in at £2.90 down from £10.
USD strength hurting gold price
Gibson commented that the gold price in USD having fallen from $1900 to £1100 per ounce, and he continued to note that this was effected by the strong US Dollar, with the number of USD potentially in circulation having quintupled. He finished by discussing Randgold, which normally makes a big deal every 4 years, and he expressed this as a good time to buy.