Barrick Gold (ABX) Message Board

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Gold/Mining/Energy : Barrick Gold (ABX)

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To: tyc:> who wrote (2646)	5/13/2002 12:26:42 AM
From: FuzzFace	of 3558

Please give me some credit. I know that forward sales is one form of hedging. Forward sales depress the price of gold. The rest follows from that simple fact. Hedging has aspects of the prisoner's dilemma in it. The best strategy is for everyone not to do it. Then they all suffer equally, but the pain is over sooner and total suffering (losses) are minimized for the group. If just one party does it, he makes out like a bandit at everyone else's expense. But that only lasts until the others catch on and do it too. Then once everyone, or enough of them do it, everyone loses much more than if no one did it.

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