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Gold/Mining/Energy : Barrick Gold (ABX)
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To: russet who wrote (3494)10/14/2005 8:14:51 AM
From: tyc:>  Read Replies (2) of 3558
 
>>"hedge their gold revenues in a nearly risk free manner"

Do you still see it as "nearly risk free"?

The reality of hedging was the sale of unmined gold for US dollar debt (bonds). I like to think that it transformed the unmined gold into bonds. With the fall in the US$ and the ballooning of mining costs, can these bonds still be mined profitably ?

Contrast this with the companies who did the opposite, going into US$ debt to develop their gold assets. As things turned out, which action was more profitable or less risky?
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