My point is this - the gold price has risen substantially to date in USD terms, but not in AUD terms.
The Australian Gold Council was reporting at the end of the September Quarter in 2002 that the average gold price for the quarter was A$577/0z, and for the 12 month period, was A$563/oz.
In current terms, today's spot price in gold is at or about A$600/oz.
In the space of 18m+, the A$ gold price has risen by <7%, and since Q3,02, by ~4%.
Of itself, this would not have been sufficient to galvanise the locals into action. Some, may well be getting U$50/oz more than they were 9m+ ago, but if they are then it all has to do with hedging (something which most producers have moved away from in recent years). And, in this regard, hedging carries with it a double whammy (ie: the need to hedge /unhedge for exposure to a rising gold price, vs the need to hedge for FX exposure to the falling U$).
To, therefore, say that "(i)f a company has been profiting $50 an ounce, an extra $50 oz would double their profit", is erroneous because once converted to A$ terms, the recent rises have been singularly unspectacular.
