market revaluation 75 cents., page-12

People get confused between the CPI and "Inflation" what is quoted in the lay press as "inflation" is actually the consumer price index.
Yes costs have been going up and sure this affects gold producers bottom line but this is not the long term macro you need to be focused on regarding Australian Gold stock valuations.
The long term macro is broader than that : it is an ongoing fall in productivity in the Australian services and manufacturing sector vs the rest of the world. Particularly our biggest 2 competitors the USA and CHINA. This IMO will continue to put downward pressure on the AUD in the basket of global currencies. As a result as each month goes on our Australian Gold producers get cheaper and cheaper valuations : and here is the thing on WORLD gold reserve valuations. Sooner or or later takeover speculation will hit the market as the big world miners have knowhere else to turn? And where better than cheap Aussie gold producers in one of the safest sovereign jurisdictions in the world? At the end of the day yes productivity is falling in Australia but the gold mining sector remains the best sector (productivity wise compared to every other) So where are you going to put your capital? In a bank or long term cash reserves with disinflation clearly here (I agree with the above poster on this) earning ever decreasing returns in "Aussie pesso's" or fully franked divi gold stocks still paying 3-4% plus - with all that takeover and consolidation upside potential?
Just MO/NA