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

To: Ken Benes who wrote (45428)	11/30/1999 9:42:00 AM
From: Enigma	Respond to of 116768

"The fact that they did not, indicates they do not believe gold will go much higher, and secondly they have no interest in in higher gold prices" As usual there are two fallacies in the above statement: 1) most producers are not looking for gold immediately to cover hedging - they are looking to production from their own reserves in the ground - when it is mined I should add that even the producers in deep trouble must have mixed feelings about a falling POG - because it diminishes the value of their non hedged reserves. I notice that ASL stock suffered yesterday - when one might have expected the reverse. 2) No producers - except the ones in deep trouble - want the POG to fall - this type of comment flies in the face of all that miners aspire to. d

To: Ken Benes who wrote (45428)	11/30/1999 9:50:00 AM
From: long-gone	Respond to of 116768

As you are well aware, some of the producers have very slight hedge positions, AU's is around 10% of total production for next 5 years. HM's is likewise very small. Remember, the producers with the lowest hedge positions also run with lower credit due to (stupid manipulative)ruling by Standard & Poors. In current market, it may make sence to keep some of your powder dry.