For an Australian Gold company to see an increase in $A price, if $A goes to 70 cents US, the US price of gold will need to be significantly more than $390.
When all is said and done, gold is a commodity, and its price reflects supply and demand. If the price goes up (as it has done recently), more and more mines will come into production. The price of any free-market commodity will always oscillate around a price that is slightly above the average cost of production.
In good times everone makes a dollar, until the production increases and the price drops. It drops too far, and very few people make a dollar, so production dries up.
Any how, not here to argue about it all. I just think we have already seen the top in this gold boom. I've been wrong before.
CRS Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
