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Gold/Mining/Energy : Gold and Silver Mining Stocks

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To: Enigma who wrote (333)	6/9/2000 10:07:00 AM
From: russwinter	Read Replies (1) of 4051

I'm not arguing that every ounce is exposed or mismatched. My point is that this is a problem because of it's sheer magnitude and complexity. It's a witches brew given that even small miscalculations and unforeseen consequences (and I've been mentioning them as I go along here)are magnified in what is in reality a pretty thin physical gold market. Recent history has already illustrated that accidents occur in these markets regularly. Don't be too surprised to wake up some morning to a big one in the gold market. I'm just cautioning in the spirit of advice typically given to parents about, "know who your child's friends are". Just know who your hedger's counterparties are. If you are confident in the strategies of the JP Morgans and Deutsche Banks of the world then by all means jump in. However, I would again argue that such confidence is the antithesis to the sentiments of many, if not most investors who are attracted to this particular market in the first place. This in large measure also explains the poor performance of their stocks, and that's a big part of my rub against hedgers.

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