I think about as much of your answers as you do of my questions.
What has been one of the cheapest sources of raising capital?
Does not the "gold trade" fit high on the list? Maybe I don't understand but I thought a company with access to a bullion bank could borrow gold (previously) at 1 1/2%, sell it, use the funds for acquisitions and a major expansion program. I thought this was one of the cheapest ways of obtaining capital!
If a company is likely to have access to bullion banks, and also has access to one of the major producers, enabling access to newly mined gold when and if necessary gold payment is required, it must be a temptation to not take advantage of cheap capital.
If rates were to take off to the sky, access to physical gold restricted, then It would not be so wise, but then that would never happen would it? or would a company that was doing that, just take out some derivatives to cover any upside gold price? Of course, if the the derivatives were to default?
My wording may be drivel, I don't think the basic question is! I don't know if this is the case, I just wondered when the rumor came out they were interested in going private,if it was possible they had been using "gold carry" as a financing tool.
Sorry I can't express my thoughts better.-mike |
