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

To: Ken Benes who wrote (38156)	8/1/1999 5:23:00 PM
From: Bob Dobbs	Read Replies (1) \| Respond to of 116764

Ken: You're absolutely right - the fall in the POG is as much attributable to the short-sighted hedgers as it is to the mobilization of lent CB gold and the chorus of banker/broker minions crying of imminent sales. The problems for many producers is that to shut down more mines might put them out of business, or at least force their hand at incurring hefty labor costs during the upcoming layoff/rehiring cycle. Several mines in South Africa come to mind in that regard. I'm in agreement with you, however, that the most effective business plan for the producers is to shut down as many mines (wherever financially sensible) and just buy physical in the open market to ride out their existing hedges. Again, GATA would have a hard time openly mobilizing support for such a concerted move because their opposition could paint such a maneuver as collusive. It does make sense however, for the board to support this position, rather than just thrashing through the daily tedium of gloom and doom mining. Bob