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Gold/Mining/Energy : Barrick Gold (ABX)

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To: russet who wrote (3044)	5/23/2002 7:29:31 PM
From: nickel61	Read Replies (1) of 3558

I used to think you were actually a fairly serious person. Based on your last post it is clear you are just a closed minded blowhard who actually can't get the simplest concept of economics or math through your head. The move upward from $40 gold in 1970 never would have let Barrick close the hedges. You actually believe whatever they tell you like somekind of star struck child. The fact is that all they are doing is shorting their own product, gold, that they borrow and have an obligation to replace with more gold..the interest lease rate has to be paid in gold not currency and then investing the proceeds and claiming to have somehow done something wonderful. The proceeds that they got from the short sale is only invested in bonds......not transformed in someway to anything other than an accounting gimmack. SO the great premium you and they talk about is really just a short sale and then the interest earned on the proceeds for how ever many years they want to claim they are going to leave it open. That is it Bozo.....get it...nothing but a simple short sale followed with an accounting entry of your projections of how much interest you will earn for however long they want to pretend they can wait until they have to repay the loan. IF it was just a short sale would you still be as impressed? Is it the fact that they can get 5% interest that impresses you? Or the fact that they have the ability to wait before they have to repay the loan? Is that what you think is special? It is a joke, that is why they are so secretive about it. If they were more out in the open about what they were doing even the analysts of Wall Street would get it and the whole thing would be comical. NOW just your love of a free lunch and your thrill in saying "look how smart I am for understanding that they are able to earn interest on short sale proceeds and thanks to compounding they can grow those proceeds alot if they wait long enough" My god man is that the best you can do? It is silly and they have been manipulating the price lower to try and bury the other producers. THat is over and the more people that understand the three card monty the less fools like yourself there will be bleating their praises. THe part that is so simple and you completely miss is that what is so impressive about this? NOTHING! They are simply snowing one dimensional people like you who believe in getting something for nothing. It is stupid. And yes I am not surprised that you have fallen for it in it's entirety. The reality is that gold sold at the market low like they have been short selling gold for the last seven years will look pretty stupid once the market rebounds to where it should have been all along. You may not have a clue where the true value of gold is but frankly Russet you don't seem to have much of a clue about anything. Except the naive enthusiasm you seem to have for Barrick introducing you to the power of compound interest. Gee! That is something isn't it?

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