sellers queueing up, page-10

Mmmm. Aussie companies don't record their profits in terms of greenbacks, pal. If gold goes up in US dollars and so does the Aussie dollar in US dollar terms, if the rises are exactly the same it will mean virtually diddly squat to the bottom line for Aussie goldsters. Gold acts as a proxy for the US dollar: most of the time when the US dollar falls that means gold is rising but so are other currencies.

The key difference with the rise in gold price this time is that there are now massive worldwide inflationary expectations due to continued high oil prices. Gold is rising because of these expectations due to its 'store of value' cachet: and this rise will be sustainable whilst inflation is around and interest rates are relatively low.