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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (36017)	6/28/1999 12:53:00 AM
From: Claude Cormier	Read Replies (1) \| Respond to of 116753

IMO, the miner doesn't sell a contract. He signs a contract on the OTC market where he promise to deliver to a third party (usually a bullion bank) a quantity of gold at a later date. He is not going short. He may deliver the gold or simply as you said, sell the gold spot and pay the banker a fee... that depends on the terms which varies form contract to contract. The way I understand this is that most of these contracts are OTC and not futures on COMEX. I think you are absolutely right. Barrick and other miners are no short sellers.