kyrgyz election emboldens aussie miner to dig , page-14

Something I posted "over the road" on KGL relative to peers, and gold price.

I agree Melu.a, I too believe all gold stocks that I have looked at are at or near full value based on spot gold prices and current production.
Some look reasonably cheap on near term production.
KGL is a rare exception and is extremely cheap based on Andash.
That is why many of us expect a very strong re-rating.

However I believe gold is now well undervalued. I believe gold should be currently at $2400 min based purely on the increased money supply now compared to 1980 and the price at which gold stabilized just after the $800 peak, namely $400.
Allowing for the huge increase in debt as well and the likelihood of having to need to inflate that debt away with MUCH more money printing, the reality is the price of gold will continue to trend much higher than $2400. $5000 may not be enough based on that.

Therefore I think the sector will very strongly outperform for many years and that will give KGL much more upside than what we are discussing based on current gold prices.

Some argue that operating costs will rise in line with gold.
The first point to that is that if POG and costs rise by a similar amount, then profits still rise significantly.
The second point is that with the resources boom, I think costs have overshot and will not rise as quickly (as gold) from here on.
In fact if production of other resources slow with world growth slowing we may see no growth in costs.
I have not looked at the stats (but I will soon) but suspect those costs have risen in line with monetary inflation as has pretty much everything else has -other than POG (median price of houses in Australia have performed much better than gold in AUD or USD terms since 1980. So much so that even a large correction still leaves gold needing to rise to $2400 to catch up in performance).
Many argue that POG is suppressed. Looking at how gold lags so much despite it being by far the most desirable currency right now makes me believe that gold is indeed being held down by Western interests, but the continuing shift of wealth from West to East will mean an eventual or more likely abrupt end to that suppression and the price of gold will find its true value-or overshoot.