Yup - everything you say is spot on. But the same applies to almost all commodities - including iron ore, copper, nickel, uranium, whatever. The problem is always going to be the exchange rate vs the US dollar prices.
I suppose that even if our dollar reaches parity with the USD, there will be a point where the gold price will outstrip the exchange rate disadvantage. That's when we may see more marked upward movement of local share prices when gold just keeps going up. It is likely to go a lot higher than our dollar will, methinks.... ;)
As I type this, the Asian spot price for gold has climbed another $7.40 to $988/oz, while silver is $15.98 - only 2 cents short of $16/oz. Could be another interesting night once the US gold market opens.
LGL Price at posting:
$3.31 Sentiment: LT Buy Disclosure: Held
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