Most gold stocks had a day to remember, none better than...

Most gold stocks had a day to remember, none better than Spartan. As others have pointed out, it’s extremely rare to see the share price move up strongly against a discounted capital raise - a great omen going forward, and a delayed but well deserved reward for the results which came out of Pepper the other day.

Going forward, I think we can’t help but find a lot more gold but I believe the action today across gold stocks is very much related to the AUD currency movements in recent days. I think the Aussie dollar is potentially in big trouble, and gold will prove a great place to rest some cash over the short to medium term. The reason the AUD is in big trouble (potentially) is that we have very sluggish growth, at the same time, underlying inflation hasn’t been beaten. We are on the precipice in this country of no growth with inflation still not dealt with, in other words stagflation. We are in fact seven quarters into a per-capita recession, the only thing keeping the country from moving into recession is immigration.
Pressure on housing will continue and the labour force is fighting, more and more, for large wage increases to cover what was lost to high inflation in year’s past. The lower AUD will also import inflation. At the same time, the USD looks strong as anything.
My call is that the AUD to USD will fall into the 50s and that will be very positive for our gold miners at least.
Well done to all those who have kept the faith.