Overnight our poor old $A tested 60 cents against USD and our gold price therefore rose to $5036
A 50 cent currency would likely see our gold price around $6000
There are very few things that domestic investors can do to hedge such a depreciation in a domestic currency, but holding shares in a growing high grade profitable gold producer like OBM is shaping up as an easy and worthy alternative.
surprisingly, the gold sector generally is still under invested by global funds … and we may yet see a tidal wave of interest from overseas once they better understand the types of margins we can enjoy.
I expect OBM cost of production may settle down to ~$2000 an ounce, once into a steady state of production.
OBM Price at posting:
$1.03 Sentiment: Buy Disclosure: Held
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