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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: craig crawford who wrote (110470)6/28/2001 12:26:30 PM
From: pater tenebrarum  Read Replies (3) of 436258
 
ABX has excellent properties...but i still won't buy a hedger. this has nothing to do with conspiracies...to me the only reason to invest in gold stocks is to be exposed to the upside in their product. why should i buy one that has capped this upside at a ridiculous price level? not to mention the risks they're taking as explained in my post on miningweb. if one doesn't think there's upside potential in gold, there's no reason to buy gold mining stocks at all. ABX derives 80% of its profits from its financial engineering...it's not really a gold miner, it's a hedge fund that's short gold and has a few holes in the ground on the side.

a comment regarding the alleged 'conspiracies'...i don't think there's a conspiracy either. but i do know that there are powerful vested interests profiting from stable to lower gold prices. beginning from the bullion banks with their mismatched gold lending books and vast derivatives positions, to hedge funds financing speculation in paper assets with borrowed gold, the big hedgers (the two biggest are short 40% of global production) and last but not least the CBs who don't want the alarm bells to ring when they're printing money like there's no tomorrow.

and where there are powerful vested financial interests, a certain degree of market manipulation can be expected. the circumstantial evidence supports this as well. but i don't think it rises to the level of a conspiracy.
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