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Gold/Mining/Energy : Gold Price Monitor

GDXJ 108.88

+4.2%

Dec 9 4:00 PM EST

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To: pater tenebrarum who wrote (55871)	7/7/2000 10:31:48 AM
From: Enigma	Read Replies (2) of 116801

I don't think the market would turn around just by all the producers renouncing hedging - it might - but there are other factors at work here. With such big short positions, the price being so low, you'd think someone like Soros would come in and break the bank - but it doesn't seem to be the case. Perhaps we have to think the unthinkable - that for many producers gold is still so profitable that the only thing that can shake this out is a large fall in the price leading to large numbers of mines closing. Then we'd really see the survival of the fittest. I see the hedging debate as essentially revolving around a red herring. A point has to be reached where speculators see it in their interest to be LONG gold. If we have a collapse the gold carry trade has ways to go and much money to be made still. Nobody has a handle on this at all.

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