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

To: Enigma who wrote (43824)	10/25/1999 5:51:00 PM
From: Ken Benes	Read Replies (1) \| Respond to of 117047

Let's put it another way. What are the benefits to a shareholder for his ownership of a hedged companies shares? It most definitely would protect the shareholder should the price of gold temporarily drop below the cost of production and threaten the viability of the company. For this minimal amount of insurance, we have limited upside as we have just witnessed. . Hence, the question, why bother owning such a company. You have a bit of insurance that you would not loose your entire investment (owners of Ashanti are teetering), but it would also be difficult to make money. The answer to the riddle is clear, sell the hedged producers, it is a bad investment with little or no upside. Ken