small gold hopefuls, page-8

I agree tripleg... but the AU has been underperforming all currencies. There are also fundamental factors unique to the AUS$ which are very bearish

the unwinding of the yen carry trade

the unwinding of hedge fund long positions

the "commodity" currency status

the constant need for Australia to borrow offshore to keep the place going

If the $US drops 15% and the AUS rallies 15% that might take us back to 80c. At US$1200 gold ( which a 15% drop in the US$ will no doubt produce) that still gives us AUS$1500 plus

I have always been of the belief that for an investor it was not worth buying gold stocks at less than $AUS1200. The ROI is not there to justify the risk. Now the returns are stunning for the high grade producers and good for even the lame duck WA producers( except SLR of course!)