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Gold/Mining/Energy : Gold Price Monitor

GDXJ 106.70

-0.3%

4:00 PM EST

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To: RagTimeBand who wrote (24939)	12/26/1998 11:06:00 PM
From: Zardoz	Read Replies (2) of 116796

"I was thinking about how all these gold companies( namely ABX and PDG) have all these gold hedges in the $350 - $400 range if I am not mistaken, then I thought,"Hey, this is stupid. Why would they hold these hedges, when they could just buy gold at cash today for $290 an close out these hedges for upwards of a %30 INSTANT return?". Why can't everyone consider this: It's the actual buying in the spot market that KEEPS Gold at it's lofty value, and it's the sales on the futures markets that gets eroded. If Barrick unwound it's hedge position{some suggested}, maybe they were trying to create a demand for a over supplied position. YES, it's the fact that manipulation is on the BUY side, and not the sell side. What to see cheap gold, have the hedgers stop buying for one day. Gold is not reflecting the COST OF PRODUCTION. Time to short some more.

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