Barrick Gold (ABX) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Barrick Gold (ABX)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: nickel61 who wrote (2303)	4/2/2002 5:37:10 AM
From: nickel61	Read Replies (1) of 3558

The short version of the problem is that it is a game of musical chairs, when the first large hedgers try and cover all the others will follow. That will be the catalyst that drives gold much higher, fired by the market fundamentals we have discussed. Normandy is covering as we speak. There is only a very limited amount of gold that is available to cover with at $304/ounce gold. Which is what led us into the long arguement about what the "real fully loaded cost of bringing new gold to market is" I still argue that it is higher than $350/ounce. Not the incremental cash cost of producing another ounce of gold from an already operating mine the true price of gold needed to double world wide production for the next five to six years to allow the inbalances in the gold market to clear. Think about it. You have only been able to have gold get this low be large central bank sales, what function did gold perform for central banks in the minds of their citizens and why did they use to have it in their reserves. Is that function not missing in Japan and Argentina right today?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next