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

To: long-gone who wrote (40632)	9/22/1999 10:34:00 AM
From: Lightning	Read Replies (1) \| Respond to of 116790

If a gold miner has a hedge book, aren't they short gold (albeit a covered short since they have gold in the ground)? They have sold forward gold and intend to deliver the specified number of ounces at the specified future time. If they believe that the price of gold has bottomed, they can close out those contracts (all of part of their hedge book) and essentially sell their gold into the spot market as they produce it. Many hedged producers could generate huge profits by closing out their hedge books at current prices. One of the factors that ignited the 1993 gold bull market was ABX closing a third of their hedge book. Perhaps we just got a similar signal from Gold Fields LTD.