"Holding gold stock is not the same as holding physical stock."
Comment: Correct imo.
"Just as any other mining company that relies on demand/export, the price of the commodity is just one of several factors that contribute to the SP. Production costs, the value of the AUD for export heavy industries, debt levels etc are examples of other factors that affect the SP of mining companies."
Comment: Correct imo. But if you are in Australia the value of the AUD also affects your physical gold. In addition, after taking into account the factors you mentioned, gold companies are after all asset based companies. You cannot ignore the gold they have imo.
"These days the gold stock seem to be less exposed to the POG and more directly tied into the health of other mining stocks."
Comment: Not correct imo. When uranium stocks were booming gold stocks were not. When iron ore stocks were booming gold stocks were not. When nickel companies were booming gold stocks were not.
LGL Price at posting:
$2.47 Sentiment: None Disclosure: Not Held
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