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

To: Ken Benes who wrote (42388)	10/7/1999 5:49:00 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 116897

Ken, RE:"As Jim McMannis has stated, gold equities will do better in a good market and will go down with a selloff in the marketplace. Investors have ignored this and used the producers as a proxy for the metal in a flight to quality scenario. While the metal may persevere, the image of the mining companies has been shattered. They never worked for the shareholder and with their lack of managerial skills allowed themselves to be exploited by the bullion banks providing the collateral for the speculators, hedgefunds, and central banks. The gold investor has missed the glory of the bull market in equities and at the moment of their triumph and the greatest short covering rally of all time has not made any meaningful money. While the investor falls short, the top execs of the producers issue themselves some options or reprice existing options and walk away with a bundle. The investor not only has been deprived of his pot of gold but is left with diluted shares." ---- How ironic that is. Finally gold rallies and the gold mines/stocks get left at the gate because they have already sold their soul to the devil. So the place to be is in the bullion or derivatives there of unless one can find gold stocks that haven't sold forward. I see one silver lining in this. I've often wondered who was left to drive up the price of gold when the money went into the gold stocks. Maybe the money finally finds it's way to the bullion driving it up while the gold mines sort themselves out. Jim

To: Ken Benes who wrote (42388)	10/7/1999 6:44:00 PM
From: long-gone	Read Replies (2) \| Respond to of 116897

<<This rally has exposed the producers for what they are and it will take a long time for them to regain their credibility. First the price of gold went down the toilet, now the mystique of the mining companies have followed.>> You're right, & The Street is(the same as you) painting them all with the same dirty brush. Even those who have done their best to run with a mininum hedge position are getting slammed.

To: Ken Benes who wrote (42388)	10/7/1999 7:34:00 PM
From: Terry Swift	Respond to of 116897

Ken: I agree. The producers are largely responsible for the situation they now find themselves in. Without the massive forward selling by producers for the last couple years, gold would never have reached $250 and producers would be cheering these higher prices instead of scrambling to unwind their hedge books. The sight of producers like Ashanti and Cambior (and who knows who else) actually being pushed to the brink of bankruptcy by HIGHER gold prices when they mine and sell the stuff is absolutely ludicrous. Ashanti stockholders should be outraged and hold management responsible for their incompetence. I also agree it will be a while before investors will trust a forward-selling producer again. There are other ways to hedge against lower prices (puts, for example) but the idiots at Ashanti sold over 7 years of production, a lot of it under $300. Unbelievable. Terry