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

To: Ken Benes who wrote (47092)	1/14/2000 10:11:00 PM
From: Eashoa' M'sheekha	Read Replies (2) \| Respond to of 116790

Barrick Gold Has One Mandate..And One Mandate Only...... KILL THE GOLD MARKET!! Remember...It is a political metal... And they are a political company..... E-N-D O-F S-T-O-R-Y Pedro Munk And Vinny Borg Are Patsies Thank You Have A Nice Saturday

To: Ken Benes who wrote (47092)	1/15/2000 12:07:00 PM
From: Enigma	Read Replies (1) \| Respond to of 116790

If the leased gold is sold into the spot market - what happens to the physical gold as it is produced from the mines? I think you may have it arse backwards - the leased gold is sold to assure supply at least in part - bearing in mind that majors have mines all over the world, and supply from mines can be interrupted. Someone on another thread brought up the matter of Placer and the mine where the mine was shut down because of a tailings disaster. Are you trying to say that gold is sold twice - I think you are only dealing with one side of the ledger. Or are you dense too?

To: Ken Benes who wrote (47092)	1/16/2000 12:06:00 PM
From: Zardoz	Respond to of 116790

When the leased gold is sold, within weeks of the lease date, it adds supply to the spot market. But when it's purchased back, it adds demand to the spot market and/or the futures markets. To date, gold that has been leased is continually rolled forward under a new term and not returned to the leasor. Gold sold forward may not be delivered for years to come, if ever. More than likely, it will be offset by additional paper contracts. Gold sold forward is seldom paid back before expiration of the lease, it's not financially sound to pay it back before then. That is the nature of the forward contracts. BUT a gold hedger will buy the spot gold in any rapidly rising price environment to lock in a price hedge. Gold that has been sold by futures are seldom rolled forward, UNLESS the environment in the spot has placed an undue volatility premium on the futures price. Do you even know how the process of rolling a future forward works? It does have an incurred cost involved. Hutch