gold set to rise?, page-6

Hi, I think the factors concerning the appreciating gold price in AUD terms has been over-cooked a little. Not because I have posted on NCM which has currency hedging.

But, a higher gold price in AUD terms promotes further exploration and tax incentives to gold companies. If the gold price continues to uptrend, the government will eventually want a peice of the pie.

If the company has minimal or nil forward selling contracts, then companies are not really affected by the AUD, it actually enhances its investment aura, it doesn't hamper it.

I have yet to see an example where an Aussie gold stock suffers from a rising gold price in AUD terms.

Maybe it is an urban myth ? If Aussie gold companies are not hedged earnings impact is minimal.
It also depends in the currency the gold is sold at, the common currency is in USD yes, but JPY, YUAN, NZD etc also exist in their respective crossrates.