Gold Price Monitor Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor

GDXJ 94.04

+0.6%

4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: GST who wrote (48377)	2/7/2000 3:23:00 PM
From: BSGrinder	Read Replies (1) of 116764

It appears to me that Barrick has declared war on the rest of the industry. It seems they have just spent a lot of money repositioning the net of all their hedges at a higher level: $360 for year 2000. If gold stays significantly below that price, they gain, while everyone on the unhedged side loses (allowing Barrick to purchase further reserves at firesale prices). If the price moves above $360, their hedge book turns negative and they look stupid. So it would seem that they will keep selling forward as much as is required to keep the price below $360. Therefore, you are right, if gold rallies strongly, particularly past $360, then Barrick is losing control. /BSG

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next