SLR 0.00% $1.57 silver lake resources limited

entry point at $2.10 ??, page-16

  1. 14,275 Posts.
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    AUD at 60c would be great for our exporters- especially miners (some manufacturers will be faced with offsetting high input costs but should benefit overall).
    Even miners will pay more for some inputs such as explosives and fuel but labour is a large cost so a low AUD will be very beneficial for the minors.
    However, "be careful what you wish for" is very appropriate here.
    Imagine what we will be paying to fuel up our cars.
    Our transport industry will be faced with the same large price rises and pass them on across the whole economy.
    Imported goods would jump in price by around 40%.
    Inflation would be large.
    Interest rates will be pressured higher to fight the inflation and strengthen our dollar.
    It would be ugly if anything other than a spike.
    Over time it might be beneficial through an expanding export sector but that would take years to a decade or more.
    Holding gold stocks would be a good hedge against that scenario.
    Unlikely though IMO, because we have commodities to back our currency and the US will keep its printing presses in overdrive for the foreseeable future (as do we which should keep our dollar from rising too far even if everything gets rosy again -not expecting that anytime soon).
 
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