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

To: Zardoz who wrote (1675)	12/29/1999 4:27:00 PM
From: nickel61	Read Replies (1) \| Respond to of 3558

The affect that forward sales have on the spot price of gold is pretty straight forward. If you bring production forward that has not yet been mined and add it to the supply demand situation in the spot market it will pretty clearly lower the price the spot gold sells for all other things being equal. The key is that this is gold that is leased from a Central Bank that would otherwise still have the gold sitting in its vault and does still show it as an asset on its balance sheet even though it has been melted down and is currently fabricated into jewlery or a transitor connection.The leasing of gold that would not otherwise be in the spot market increases the supply without a corresponding increase in demand ipso facto the price will decline.All else being equal.