Yes you are absolutely correct Vet. In the short term in gold...

Yes you are absolutely correct Vet. In the short term in gold stocks it is all about sentiment. And sentiment is really driven by USD price of gold. We know that in the US investor demand for gold goes up as price goes up. Gold stocks even more so are a speculator driven market. That’s amplified since the gold stock ETFs own 10% of most of our producers.

In the medium to longer term the Australian gold producers have been tracking higher over the last 4 years and that’s at a time when A$ margins are near the highest ever. The key caveat is that the gains have all been in the stable producers. The companies with high costs and unsteady production have been completely ignored. Maybe that’s starting to change with the second tier producers starting moving now.