Wishing you the best in 2001, Gold talk.
MIDAS note:
I received the following the other day from a
very credible source: "Did you note ABX covered
10,000,000 of their 13,000,000 ounces of short
deferred gold using calls?"<p>
Now that would be a major gold market event if true.
Since I had heard of nothing of the sort, I put out
a feeler to two major Barrick shareholders. They
have come back to me now and said they have heard
nothing of it either.<p>
Let us step back a bit.
A year ago, or so, Barrick was short 13.4 million
ounces of forward gold. When Placer Dome announced
early last February that it would be delivering into
its hedges and not rolling them over, gold shot up
from $290 to $320 in lightening fashion.
Barrick was under pressure from shareholders around
the world to do the same. They did not make that
decision, but announced that they bought 6.8 million
announces of calls against their forward sales.
Those calls have been expiring and sources tell me
they are down to 5.1 million ounces left. Sometime
over the past many months they sold 5.5 million
ounces of calls against the 5.1 million calls that
were expiring on a monthly basis. That means their
short position had grown to 13.8 million ounces
(13.4 million plus 400,000 ounces).
Barrick did not reveal to the public that they
sold the 5.1 million ounces of calls. When confronted
about this when it became public way after the fact,
Barrick reportedly told perplexed inquirers that it
was not material information.
If that is what they said, I find their response to
be a bit dubious at best. But, there is no way that buying
10 million ounces of calls is not material, if they
have done so. If true, certain shareholders are
receiving inside information, while others are
not.
If true, what does Barrick know that it is not
telling others? Why would they be covering their
shorts now? What has JP Morgan told them? Does the
Howe/GATA Complaint have anything to do with it?
I am only reporting what a very credible source has
told me. It will come out in time either way. But,
if true, Barrick will have a lot of explaining to
do. And, it certainly would be a VERY bullish gold
market developments.
Then one would have to wonder, who on earth would
have sold that size call position to them at this
late stage in the gold collusion game?
Stay tuned!
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Tyrex Resources Corporation will be up and running in 2001.
Maybe we can do battle some day.
I always liked Damoti, but after talking to Paul, sounds like they would just work the High grade stuff. I guess that all depends on Gold price, maybe at 500, things would look way different.
with SDM selling so low, nice time to gamble.
see how it goes in 2001.
Going to try trading up North on internet, see how that goes. |
