Good one from Leonard Kaplan:
"For the best spin of the year award, I hereby nominate Mr. Peter Munk, chairman of Barrick Gold. Perhaps there are those who understand the following quote, but I certainly do not. He said, "Hedging, the way Barrick does it, not only does no harm to a gold price over any period of time, but it actually assists in the evolution of a healthy gold price". So, is he saying that hedging, which accelerates forward production into present day sales actually HELPS the gold market go up? If so, then one might assume that even heavier sales would force the gold price much higher. No, even he doesn't believe what he said as later in the interview he stated, "I must say that I can't see anything in the short term that can cause a dramatic change in the gold price environment". Mr. Munk, just sell more....didn't you just say that would create higher prices??" |
