I think you presented an extremely bearish view. That's okay everyone is entitled to their own.
The fact is the AUD gold price is not at 1250 and the Aussie dollar is in no hurry to march higher.
The Aussie Gold price has been in a range of 1600-1700 for more than a year. SLR has almost 40% production hedged at 1700.
I think due to weak Aussie economy the Aussie dollar will remain under pressure for quite sometime and RBA rates hikes are nowhere near.
I am hands-on involved in the retail sector. I can tell you things haven't been this bad in the last 16-17 years of my involvement. All that bodes well for the Aussie Gold Price.
If the market would have thought of a higher Aussie dollar, the share price of SBM, NST, RRL would have been crushed. That's where the fat & cream exists.
But I do realise the fact that there is no buying power here. For some reason SLR is not that attractive. The people who hold get tired and sell. Next and so on and on. Same with RMS, RSG, PRU etc the whole junior miner lot.
