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

To: Investor-ex! who wrote (1627)	12/19/1999 8:07:00 AM
From: nickel61	Read Replies (1) \| Respond to of 3558

Thank you for the correction.I knew ABX was a very large percentage of the XAU because of its market capitalization,but I had forgotten the exact amount.As you pointed out in one of your posts several weeks ago ABX is the largest market capitalization of the North American producers. And I'll conceed that this is probably very much due to their hedging strategy over the past ten years allowing them to get a higher price for their gold.As far as your other two statements, yes I do feel that ABX is vulnerable to a squeeze should there be a continued short squeeze in the physical gold market. And yes I would be one of the first to buy every ounce of physical I could to both profit from that and teach their arrogant management the downside of screwing with a free market.As far as your analysis about the reasons that ABX has underperformed the other unhedged gold producers since the Wahington Agreement was announced in September,I think you are absolutely correct. In fact I own a fair amount of Homestake Mining and had been perplexed as to why it had been trading so badly in spite of their timely covering of 250,000 ounces at the bottom of the gold market in late July. I think your stataement about these stocks being used as offsets to the hedge funds short postion is right on. They have suffered as the hedge funds needed to raise capital to cover their margin calls.Thank you.