When you look at price of gold, you need to look at the price of gold in AUD if you are invested in ASX gold stocks.
It is a big mistake not to look at AUD gold price. At the end of the day, they need to report their profit or loss in AUD. All their expenses are in AUD and all their profits need to be converted to AUD for tax purposes, profit and loss reports, and dividends,....
The above screenshots are pulled from goldprice.com and it is up-to-date as of 14/02/2024.
Over the last 14-15 years from 2009 to today, gold prices has consistently increased each except 2009 and 2013.
In 2009, price of gold in USD increased massively at 23.4% but actually dropped 3% in AUD. Why? It is because the AUD/USD exchange rate also increased massively, more than 23.4%.
Vice versa, in 2014 gold price in USD decreased 1.5% but actually increased by 7.7% in AUD. 2015 saw gold price in USD decreased significantly by 10.4% but actually increased by 0.4% in AUD.
The overall picture here is price of gold in AUD has consistently increased over the last 14-15 years.
Quantum Metal has every right to expect gold price to continue increasing over the next 10-15 years and as I said many times before, the off-take and 5% pre-payment deal that they signed with Besra is a brilliant deal for Quantum. That is bloody smart deal that Quantum can ever entered into IMO.
BEZ Price at posting:
15.0¢ Sentiment: Buy Disclosure: Held
