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Gold/Mining/Energy : Gold Price Monitor

GDXJ 114.87

+3.6%

Dec 11 4:00 PM EST

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To: Alex who wrote (52960)	5/18/2000 7:20:00 PM
From: Ken Benes	Read Replies (2) of 116813

I loved the remark by Peter Monk that, "hedging has helped the market." If anybody wonders why investors are less than enthusiastic about putting their money with barrick, his statement leaves no doubt of barricks position. Hedging has destroyed the gold market by releasing enormous amount of gold to the market beyond what the producers could mine. Barrick has reluctantly refrained from hedging since the fall, only because of shareholder pressure. This stance can change in a moment. As they increase reserves and production, barrick is salivating at the propitious opportunity to lease gold collateralized by their new reserve base. As happened in the past, this leased gold will crush any attempt for the price of gold to rise as supply eclipses demand. Gold is moving down to the 250 range again, and if god made little green apples, one thing is certain. Barrick will carp that they told you so, and lament of missed opportunities to increase hedges when gold was at the 300.00 range. After that, the flood gates will open, barrick will be installing desks in their corporate headquarters for the cb's of the world to come on in and do business. Ken

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