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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: C Hudson who wrote (1328)	8/28/1999 12:54:00 AM
From: Bill Jackson	Respond to of 3558

Ted, A producer can hedge or forward sell his gold with impunity as long as the forward sales are timed to their production rate, more or less(Barrick can up production if needed to a high degree if they have overhedged and must meet a demand, a demand known well in advance, I might add) It is a market strategy that few others can do. For example had I sold gold forward(I make no gold) at $400/oz for three years I would be fine as long as it was at $250....if it went to $500=totally screwed. Of course people would nat accept a forard sale from me as they know I would be just a speculator with out cash. Barrick has the gold, and more, in the ground. Few doubt that Barrick could crank up production to sate a 13 million ounce demand over the time frame of the hedge position...by buying other producers if need be with paper(stock). I suspect that as gold starts to jump there will be some takeovers, in fact I suspect there are some illegal accumulations taking place now with offshore accounts holding these shares bought at yesterdays and todays low prices. When gold jumps someone may be able to buy a major with only a few % needed from the market as they may have already accumulated close to a control(or even control)...all that is needed is a tender offer in shares and no matter what it will succeed as both sets of shares will jump in parallel and after they announce that 51+% tendered=game over. But that is illegal you say? Illegal=sick bird. This kind of trackless accumulation goes on all the time and works very well in these bottom feeding gold times. As to barrick? are they doing this? why that would be illegal. Bill