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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: Wade who wrote (384)	6/10/1999 11:22:00 PM
From: The Barracuda™	Respond to of 48092

Bought a bunch of gold call options today

To: Wade who wrote (384)	6/10/1999 11:25:00 PM
From: The Barracuda™	Read Replies (1) \| Respond to of 48092

You said: >>>I think POG will rebound very quickly once BOE announces that they have sold those gold, then XAU will follow<< If gold is going to rally , it must do it before the auction.

To: Wade who wrote (384)	6/12/1999 3:59:00 PM
From: Ron Everest	Read Replies (1) \| Respond to of 48092

You said: <<We all know that this weakness is just temporary. Therefore, senior gold stocks refuse to go down because of it. >> Take ABX for instance, sold forward for 3 years guaranting the price of their production, with flexibility to cancel or defer. Little to no downside and making lots of money. Any company that followed their example will have the confidence of their investors. A bonus to ABX and like companies is that they have the stability and CASH to make strategic deals to enhance their shareholder's future value in the company. The amount of shut in gold must be huge, a price increase will ramp up a lot of production at existing mines. ABX for one will be able to increase their 4 million ounces per annum and benefit from any increase in AU price. There is a lot of talk about ABX's hedging program being a contributor to the low gold prices, however, in the context of 8000 tonnes sold short (various totals are assumed from 3000 tonnes to 10,000 tonnes), their 12.5 million ounces sold forward is only a paltry 354 tonnes or 4.4%. There are obviously a good number of larger gold producers who have sold forward. It would be interesting to know just how much. There have to be buyers, who are they? It seems logical that when this thing snaps, it will be a rocket IMO. I have always believed that economic suppression of any kind always expresses itself.....eventually. The GPM thread had some statements about how forgiving 3rd world loans would express itself.....inflation.....like printing money, same thing. Eventually the pressure builds until all hell breaks loose on interest rates and inflation. Gold will have its day bigtime, just a matter of time.