There are three battles Australian gold mining shareholders need to wage.....
*Assessing company fundamentals
* Price of Gold
* Price of AUD
When XAUAUD drops $200 ( this is why miners hedge) and on the other hand XAUUSD is only $40 off its high, blame the the S&P which is grossly overvalued...
Intersecting discussion on Hedgeye this morning.....about Liquidity (printing press) and Net Liquidity (Printing Press minus Fed Balance sheet purchases) ......... printing press has slowed down and now has begun to taper, but purchases are ramping up. Once purchases exceed the press which is expected in mid June, gas will get removed from the S&P and AUD will start to drop........ there is a high correlation between Net Liquidity n the S&P and ultimately the AUD.
