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Gold/Mining/Energy : Gold Price Monitor

GDXJ 117.63

+3.0%

Dec 19 4:00 PM EST

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To: pater tenebrarum who wrote (56055)	7/11/2000 7:07:18 PM
From: Enigma	Read Replies (2) of 116818

I don't buy that argument - one BTW which is constantly used on this thread. A company wants to borrow money - the bank says 'what collateral can you give, can we secure your mine?' The company 'no'. The banker then says 'well then, we'd like you to hedge enough future production to secure the cash flow to repay the loan' What's wrong with that? It's normal commercial practice. The people who run companies are responsible for their actions, and if they want to take out loans, rather than raise equity they have to abide by the terms set by the lender. For some reason people regard all this as being sinister- because gold is involved. In the oil business companies take out production loans - secured against producing assets.

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