Barrick Gold (ABX) Message Board

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Gold/Mining/Energy : Barrick Gold (ABX)

ABX 8.305

+0.9%

Jan 26 3:59 PM EST

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To: Enigma who wrote (1479)	11/26/1999 3:28:00 PM
From: nickel61	Read Replies (2) of 3558

Clearly ABX is more able to withstand a minor up move in gold than the Cambior management proved to be. The point is that the risks are significant when you start to speculate with the amount of your "hedges" greatly exceeding your annual production. Exactly what has to be paid to whom and when is probaly unknowable to any shareholder especially individual shareholders,but the risks are still quite real, as Cambior and Ashanti's shareholders found out. There is a major short squeeze for physical gold going on currently that means the future price of gold is even more unknowable than normally.We do know that it isn't going to generate any new production unless it rises significantly. With current supply demand in deficit of about 150 tonnes per month the potential exists that a spate of short covering attracts the momenteum crowd into the biggest short squeeze in history. Wouldn't that make a goldbugs' heart warm? We are gold bugs aren't we?

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