gold ... beware of an imment large price move, page-47

  1. 385 Posts.
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    A fascinating string of people shouting,

    to no-one listening.

    Just a comment on the falling price of Australian gold stocks, if I may.

    It is highly likely the prices of these stocks are falling because some holders of these stocks are becoming concerned about the currently rising $AUD exchange rate against the US$. Remember that gold is traded in $US, and the POG is reported in $US, which means if the exchange rate for $AUD rises, sufficiently, the POG in $AUD may actually fall, even against rises in the POG quoted in $US.

    The price of gold in Aussie dollars has actually dropped these past two or three weeks, even against rises in the price expressed in $US. This points to less margin for Australian gold producers, which influences the profits of those producers. That in turn must influence the decisions of people considering buying or selling those stocks.

    So, the price people are prepared to pay for Australian gold stocks at the moment will be heavily influenced by their perception of what is likely to happen with the exchange rate in the short and longer term, as well as the POG in $US.

    The beauty of all of this is the interplay in the various factors that act to influence the day to day decisions that people make on buying and selling shares, and commodities.

    You cannot be absolute as some above have tended to be, and expect others to be overly impressed by your statements, if they are taking other things into consideration as they are entitled to do.
 
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