SI
SI
discoversearch

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 ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: nickel61 who wrote (2805)5/17/2002 6:24:15 PM
From: nickel61  Read Replies (1) of 3558
 
The jist of the Howe peice puts the Barrick hedge program clearly in the spotlight. It is afterall a pool of proceeds derived from selling gold short in the market and then simply compounding the proceeds into the distant future using the magic of compound interest to make the gold "sales" look somehow impressive. The reality is that the entire process depends upon the ability to borrow gold cheaply and invest dearly. Both of those capabilities are waning rapidly. Barrick is loudly boasting about winning yesterdays war with a heavy 18 million ounce hedge program that is no longer dedlivering anything positive to the shareholders of Barrick. The mirage of the premium sale price is falling under more and more scrutiny of the investment community and it's financial obsfication is becoming all the more apparent as each piece of the complex financial constructs become understood. The recalcitrant attitude of the Barrick hedgers in the face of a clearly changing bull market in gold is unusual and most likly belies the fact that Barrick can not cover and is trapped in it's own financial construction. Shorting your own product to invest the proceeds in bonds doesn't sound quite as impressive with gold no longer declining and the US dollar weakening significantly.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News