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

To: Bob Tate who wrote (38469)	8/6/1999 9:22:00 AM
From: Enigma	Read Replies (1) \| Respond to of 116764

Bob - many thanks for posting the Barrick hedging programme in full: <<To earn the higher future price under the forward contract, gold is borrowed from central banks through one of Barrick's gold trading banks and sold at the prevailing market price. These proceeds are placed on deposit to earn interest. The interest (or contango) that Barrick receives on its contract in the future is the difference between the interest earned on the proceeds and the interest paid on the borrowed gold>> I think this paragraph contains the element that has been puzzling some of us. the prevailing market price. Exscrh feels that the prevailing market price is the spot price - and this has been a question mark for me - I think it refers to the prevailing futures market price. It must surely - this is what qualifies the programme as a foreard sale programme - what gives the program it's central jump. One can only admire the expertise that has gone into the evolution of this programme - Munk had some very bright financial guys at the start and this has enabled them to get into such a powerful position - it also unrerlines how much of a buying opportunity is presented when this stock goes down in knee-jerk reaction to a fall in the POG. d