G'day Nightstalker. Some people are tempted to buy US gold stocks because they earn in US dollars and therefore the shares gain from the US dollar price for gold. The problem, and there always is one, is that with the Aussie dollar going up against the US dollar, then when you sell your shares and convert back to Oz dollars you get fewer local dollars. The saying is, and I am sure you have heard it, that gold is constant and currencies rise and fall against it. At the moment the $US is getting it's just deserts and finding it's true value against gold, hence you need more $US to buy an ounce, whereas the Aussie is holding it's own against gold, for the moment anyway, at least until such time as Kevie has us rolling in government debt. I agree with you that at a point the shares will rise regardless, but that will only happen when a lot of people deceide that we are in a unstoppable gold bull market and we und up in a mania. I own a few US shares and they are a pain in the proverbial. All just my opinion of course, and as I often say , even I don't listen to me.
Kind regards
Lockitt
LGL Price at posting:
$3.31 Sentiment: None Disclosure: Not Held
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