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

To: Robert Dirks who wrote (42157)	10/5/1999 12:06:00 PM
From: long-gone	Respond to of 116845

``I think people are underestimating the short position. I would say it is around 6,000 tonnes,' John Hathaway, manager of the Tocqueville Gold Fund in New York, told Reuters Television. biz.yahoo.com

To: Robert Dirks who wrote (42157)	10/5/1999 12:40:00 PM
From: long-gone	Read Replies (2) \| Respond to of 116845

<<He has a 12-month price target of $14 for the stock.>> This has to be based on around $270 POG, as they were showing profit qtrly. of $.01 with gold in that range. with $330 profit should be $60 per oz greater, or Massive!

To: Robert Dirks who wrote (42157)	10/5/1999 8:45:00 PM
From: baystock	Read Replies (2) \| Respond to of 116845

I agree with HM as a pick. But the other unhedged or minimally hedged companies such as NEM, HGMCY, GOLD, and DROOY(?) should do well as gold share investors scramble to avoid Ashanti style blowups (down 40% today!) For some reason Kaplan was blindsided by this issue of hedging by gold miners and as a result his credibility in my eyes has vaporised. Hathaway and many others warned of this. If Kaplan spent more time tracking gold and less time tracking cotton and ebay he would have known this. He sounds bitter in this exerpt from his website: <<BE CAREFUL WHAT YOU ASK FOR, YOU MAY GET EXACTLY WHAT YOU WANT: Gold mining companies, distressed at new 20-year lows for gold, banded together in a multifaceted marketing effort. First, they convinced countries such as South Africa and Ghana to lobby heavily against the IMF gold sale, enliciting support from the U.S. Congress. After this, they encouraged the industrialized European nations to issue an official statement regarding future sales and leasing of gold. The intention was merely to stabilize the price and perhaps spur a mild rally. However, the resulting euphoria actually had strongly negative consequences for those mining companies which were heavily hedged; in the case of Ashanti Goldfields (ASL), the company actually got margin calls on October 5, 1999 due to its being essentially short gold after the price had spiked upward. All of a sudden, all of the other miners who have been hedging for years, including Barrick, saw their share prices plunge even on a day when gold closed higher, as investors became worried that hedge books were a severe liability rather than the gravy train that they were perceived to be a mere two weeks earlier. It is most ironic that precisely those companies which lobbied the hardest and heaviest for central bank action, such as Ashanti and Barrick, were those which were most heavily hedged, and therefore have the most to lose from a continued upward spiral in the gold price. If major producers are not in favor of higher prices for gold, then it is obvious what is going to happen, at least in the near term. If well-organized gold miners can convince a dozen European countries to issue a joint communique, they can certainly convince a single country not in this group to issue a statement announcing a small sale of gold in order to cause a pullback. >>