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Gold/Mining/Energy : Barrick Gold (ABX)

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To: FuzzFace who wrote (2642)5/13/2002 12:06:03 AM
From: tyc:>  Read Replies (2) of 3558
 
See hedging for what it is. Essentially it is borrowing gold, selling it, and investing the proceeds in bonds.

Clearly this procedure will be profitable when bonds provide a better investment return than gold. It will be unprofitable when gold provides a better investment return than bonds.
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