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Gold/Mining/Energy : Gold Price Monitor

GDXJ 94.04

+0.6%

Nov 21 4:00 PM EST

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To: John Hunt who wrote (33735)	5/12/1999 2:11:00 PM
From: donald martin	Read Replies (1) of 116764

<<IMHO, these guys are speculating big time, not hedging. They have currency risk and treasury price risk and gold price risk.>> If they've got the gold in the ground, the only risk that they face is operating risk. Now, I would add that operating risk includes that their costs to pull the gold out of the ground could go up, perhaps that's what you mean by currency risk? Barrick mines gold to sell it. That takes the gold price risk off of the table. If they're making 5%, I doubt that they're using long-term Treasury instruments...probably shorter term paper.

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