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Gold/Mining/Energy : Gold Price Monitor

GDXJ 99.85

+6.2%

Nov 24 4:00 PM EST

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To: Zardoz who wrote (38251)	8/3/1999 4:06:00 PM
From: Enigma	Read Replies (2) of 116764

<<But most producers that hedge, are hedging against production that is still in the ground. And will be delivered after being produced>> This is of course what I said - and is hedging pure and simple - so I think it is you, sir, who have jumped into some esoteric sphere. You have introduced the subject of calls - and this is of course another layer on the cake - a layer which Barrick pioneered and many are copying. This gives Barrick the potential to participate above $285/oz in the example I made up. And there are sophisticated layers on layers no doubt. But I was trying to employ the KISS principle in my example - was talking about hedging and nothing else - just like the Kansas farmer. Just trying to secure a fixed price. The risk the farmer faces is that the crop will not be deliverable - drought, blight, etc. Hence crop insurance.

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