What do you have to fear about GATA at all? If they are just noise makers, the market will just ignore them as they should.
But if that was just so. Markets are built upon brokerages houses, market makers, and investors. It goes to creditability. Over the months this thread has, through the postings of Doug AK and other GATA neophytes, witness the greatest smear campaign. GATA, and its followers have taken every opportunity to besmirch The Federal Reserve, Goldman Sachs, and mostly Barrick. They make unfounded claims in the hopes to shake loose misinformation to use to their own purposes. They flaunt the lies in front of the press as truths, and gain notoriety. This draws to the attentions of the mid to small investors who act in accord to avoid such hedging companies, not on fundamental or technical basis, but on philosophical reasons; which are unproven. Mid size investors and fund knowing full well the impact of this, will then decrease their holdings in such companies knowing that the small investors will sell just to get even. And that affects performance. This is why companies like Barrick and Placer Dome have such a poor PE relative to those companies like NEM. In essence, GATA is pandering to the conspiracy people by feeding them what they want to hear; while at the same time make boundless claims.
This is what GATA doesn't want you to see, the effect of lies:
biz.yahoo.com
biz.yahoo.com
biz.yahoo.com
NEM and ABX are nearly directly comparable. Yet ABX has a far worse stock price, not because of fundamentals but because of perception. This perception is what GATA wants you to believe is due to hedging. Yet Hedging is only a displaced time frame sale into the future of a commodity. This can be seen by the covering ABX has done in the recent few months. Had this hedge depressed the price, and then surely the massive cover to market would've made the price of gold rise above where it is now. But yet: it hasn't.
Barrick is fundamentally better then NEM. Even Placer Dome is a more attract investment then NEM. Yet the attacks from GATA have not been directed towards NEM. People on this thread will believe what they want. And the market knowing that such people are out there will under value Barrick.
Hutch
PS: It's call share price errosion because of disinformation
PPS: A person only needs to scan past GATA comments about Goldman Sachs to see that GATA is talking out of the side of their mouth. They are on a fishing expedition. And they don't care what happens to the investment markets on the way. They have at time made liable comments {did we not see a forced retraction in the past?} and are a truly clueless group. They DON'T UNDERSTAND THE FUNDAMETALS of gold. Then they try to gain creditability by having close aliigned friends in the investment community sign onto their self serving ideology! |
