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

To: Enigma who wrote (45334)	11/26/1999 5:39:00 PM
From: Terry Swift	Read Replies (2) \| Respond to of 116779

If I believe gold is going up, I'll buy Gold Fields, Anglo, Homestake or a good exploration junior. If I want to buy a hedge fund, I'll buy Barrick. IMO, Barrick will not participate in a gold bull market to the extent unhedged producers will. I'm not familiar with Barrick's hedge program but if Barrick can opt out of it's forward sales agreements (as many Barrick supporters claim it can) in order to fully participate in a gold bull market, it most certainly paid a price for that option. If not, the people on the other side of that contract are idiots. Until we have full reporting transparency regarding producers hedge programs, Barrick's shareholders will never know what it's costing them to maintain the hedge program Barrick has. There is no free lunch. Despite their claims, Barrick can't have it both ways. For example, I have no doubt Barrick could find a bullion bank that would agree to buy Barrick's forward sales of gold at $500/oz. The obvious question is... what would Barrick have to pay for such a contract? In a word; plenty. But they don't have to disclose that, so their stockholders are not aware of such costs. Good luck with ABX, I think their hedge book is in worse shape than anyone realizes, except Barrick.