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Gold/Mining/Energy : Barrick Gold (ABX)

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To: nickel61 who wrote (2940)	5/20/2002 11:04:56 PM
From: FuzzFace	Read Replies (1) of 3558

Agreed and well said. It is interesting to me how Russett assumes there is a big difference between ungrown crops and unmined gold (calling the latter "gold in the ground" as though it were just sitting there 6 feet under in fine gold bars waiting for transport to the surface.) I can see no persuasive difference that justifies 15 year hedges for mining but not farming. I can even see a little more justification for hedging crops further into the future, since unlike mined ore, crops are truly renewable - unless the sun stops shining or the land disappears. And there is no need to find more cropland after rolling the hedges over for 15 years. Perhaps farmers could learn from ABX how to convince the market of the need for long term crop hedging. If they would just call it "future crops in the ground", I'm sure Russett would snap to and salute. Perhaps they could leverage the religious right and start a campaign to save the "unborn corn." One big difference between gold and crops is the government suppresses the price of one while supporting the price of the other. Maybe if they didn't do the former, they wouldn't need to do the latter.

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