A$1600 aussie gold, who has the highest grades in Oz?, page-35

bruce13 & bm3121,

This all bodes well for ABU.

As bruce13 said, there are conflicting views. In my mind it boils down to the basics. Gold is a hedge against inflation, conflict and diminishing purchasing power of currencies. Globally we are printing excessive amounts of money in an attempt to stimulate the economy. Evidently, it is not working nor filtering down to those on the ground level. The wheels will no doubt fall off eventually and this is when gold will shine. I believe mining shares are even more leveraged against this day given how brutally they have been devalued lately. As mentioned previously ABU stands to make AUD$50m in revenue a year for the foreseeable future but has a market cap of $88m. A serious rerating is in order and that's at the current POG.

With the currency wars continuing, a more stable measure will be required. Something with intrinsic stored value, enter Gold (or should I say re-enter Gold given its history). What will happen to the POG when the serious shortfall in physical gold is finally revealed. The demand vs. supply chestnut.

If you ask me, I do believe the P.O.G is being artificially suppressed for reasons expressed by bm3121 but there is only so long this can continue. The time of a significant increase in P.O.G may well coincide perfectly with ABU coming into production (whether overdue or intentional or not). Taking it one step further I believe China will announce their Yuan will be backed by gold and will no longer trade in USD. Russia, India and Saudi will play ball too.

High grade/ low cost producers will be the first to be snapped up.

We will see what plays out.