Everyone loves to talk about the POG going through the roof in US dollars but we need to look at what MCO can get for its gold in Australian dollars and that price has been fairy stable.
The US / Aussi exchange rate is .9707 today so it takes $1346 US dollars or $1387.10 Australian dollars at todays exchange rate to buy one ounce. There should be a nice margin for MCO in this price.
The daily hike in the POG in US dollars is because the US dollar is going down the gurgler and it takes a lot more of them to buy an ounce of gold.
Expect more bad news from the USA as they haven't changed their spending habits since the last crisis. If gold ever hits $2000+ US dollars an ounce, they will be in big trouble in my opinion. When the US sneezes, Australia catches a cold!
MCO Price at posting:
41.0¢ Sentiment: Buy Disclosure: Held
