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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: Enigma who wrote (1594)	12/17/1999 5:57:00 PM
From: Cascade Berry	Read Replies (2) \| Respond to of 3558

Find any recent period in history when the price of Barrick WASN'T POSITIVELY CORRELATED with the movement of the XAU?. Isn't this evidence enough that Barrick LIKES higher prices? Just like it was AGAIN today. Or is everyone who trades Barrick out to lunch? Except of course the people on the Gold Price Monitor thread who hate Barrick.

To: Enigma who wrote (1594)	12/17/1999 6:46:00 PM
From: Ken Benes	Read Replies (2) \| Respond to of 3558

Quite a bit of arrogance, the fella who is attempting to learn the mechanics of forward sales making aspersions of others that they do not understand the Barrick hedge book. Double D, there is little to understand, however the forward sale/hedge is structured, the end result, it adds additional supply to the market without an outright sale from the central bank. The price of gold is depressed by a sale that remains on the cb's balance sheet as a receiveable. Barrick along with others have co-sponsered this instrument to the liability of their shareholders. Barrick sells the same as it did in 1993 despite a threefold increase in reserves and a doubling of production. Had they opted not to hedge any of their future production and reserves it is difficult to see how the stock would be selling for less. The additional supply brought to market by their forward sales has forced the price of their underlying commodity lower. Ken