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Gold/Mining/Energy : Barrick Gold (ABX)
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To: tyc:> who wrote (2282)4/1/2002 7:38:43 PM
From: russet  Read Replies (1) of 3558
 
Speculators betting the POG will rise forever without any backward movements will price hedgers lower than non-hedgers. If you look at ABX's market cap, you may discover that it has had one of the highest P/E ratios of the major producers for many years running. That suggests the market you speak of is not composed of just the speculators mentioned above.

Locking in profits with little risk is good management practice. Barrick holds both "guaranteed profit" gold, and a lot of spec gold too (80% of reserves).

If you are going to invest in the gold industry, it would be prudent to stick with good managements that have been proven to pick profitable projects, bring them in on time and budget, fulfill their promises, react to changing conditions, reduce costs, increase profits etc etc. If you want to speculate on the price of gold rising, throw a dart. With Barrick you can invest and speculate with less risk.
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