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Gold/Mining/Energy : Gold Price Monitor

GDXJ 105.33

+5.2%

Nov 26 4:00 PM EST

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To: donald martin who wrote (33746)	5/12/1999 5:14:00 PM
From: John Hunt	Read Replies (2) of 116768

<< They don't profit at all from more falling gold prices >> Hi Donald, Then how do you explain the fact that their 'premium' profits were four to five times higher in the last two years of falling gold prices than they were in earlier years? ... I don't think their production grew by four times. Message 9492720 I think they are speculating on falling gold prices by selling forward MORE than they produce in a given year and buying back what they can not deliver. (I think I have heard that they have some clauses in their contracts that allow them to delay settlement into future years, but I don't know any details) You and I look at profit (or unrealized profit) somewhat differently ... probably the difference between an economist and someone with a small business background (computers) that was forced to revalue his inventory every month. Have a great evening. :-)) John PS - Thanks for taking the time to respond.

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