gold price very high in aud, page-18

the thread is a lot of fun Mike, every now and again you get a trouble maker but they don't hang around for long

read your post on WSA, you comments on currency are to the point. My great fear was that the AUS$ would rally hard and deny Aussie gold producers superprofits.

There is no denying at some point the US$ will turn down again, but it is difficult to predict where the AUS will end up.

A big component of the AUS demand is the yen carry trade, borrowing yen and buying high yield AUS. This carry trade may stop due to the risk of losing profits on exchange rate movement

Another component is the "commodity currency" aspect. As I believe we are facing a collapse in commodity demand for a while and this is bearish for AUS$

Then we have the funding of our trade deficits. If the world is not so keen to fund our deficits its another bearish component to AUS demand

So i believe the AUS will remain weak and as gold rallies hard in US$ the AUS$ price will deliver those superprofits to Ozzie gold producers

it will also protect the high grade nickel producers like WSA IGO. those guys will continue to make strong profits

currency is a casino, but that is how I see it