gold ... us$1192 ... a$1457 , page-8

SP,

The situation reminds me of when oil hit US$147. At least with GOLD you can own GOLD and relate directly to its value and what a way to preserve wealth seeing the AUD fall heavily. Not quite possible to stock up on barrels of oil.

That aside, a high oil price did not mean all the oil producers enjoyed high SP. The bottom line is obsured by hedging,forex,finance and the true quality of the resource they own. Sure in time a GOOD producer with sound balance sheet and resource will benefit from high GOLD, but the ones with all the ticks are already recognized by the market.

High oil may have precipitated the GFC to happen when it did, and the GFC then snuffed out many hopes for aspiring oil companies in the same way more global turmoil will drag down Gold producers even if Gold is high. It will at least keep a few more in business than otherwise.

Al