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

To: Alex who wrote (47142)	1/16/2000 3:31:00 PM
From: Crimson Ghost	Read Replies (3) \| Respond to of 116790

My take on hedging is different than most here. Nothing wrong with it when done when POG is high and covered when POG is low. But the ABX philosophy of having a a huge hedge position outstanding at all times no matter how low POG sinks smacks of a hidden agenda not in the best interest of its shareholders or the gold industry as such. Another problem with hedging in my view is that it has provided a false sense of security to gold miners and has helped prevent them for doing what really needs to be done - namely taking a page out of the OPEC book and CUTTING PRODUCTION AFTER CONSOLIDATING BIG TIME. This industry does not seem to know the meaning of the phrase "creating shareholder value". Now that ABX shareholders are starting to realize that the company's hedging program cannot spare them from the severe stock price drops experienced by other miners -- perhaps they will force a change. ABX stock would almost certainly rise sharply along with POG if the company announced a less agressive hedging strategy or, heaven forbid, decided to cover some of its hedges.

To: Alex who wrote (47142)	1/16/2000 8:17:00 PM
From: lorne	Read Replies (1) \| Respond to of 116790

Hi Alex. Here's how the Muslim world sees paper money. Thank goodness we in the west are not that backwards...... :-)) An Instrument of tyranny We have heard economists saying: "We need a flexible currency" "We need a currency that can be expanded or contracted according to the needs of the economy" "An increase in currency will quicken industry" These are all fallacies to justify the insolvency of the issuers of the notes in order to avoid their obligations to pay. There is, in truth, a great charm in the idea of being able to pay off all our needs, satisfy all the government expenses and to make the whole community prosperous, just by printing a few characters on bits of paper. But when a man is capable of believing that, he will believe anything. murabitun.org