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

To: Zardoz who wrote (1976)	1/18/2000 1:41:00 AM
From: nickel61	Read Replies (1) \| Respond to of 3558

You and I basically agree on this point. I don't think anyone knows but 1% physical verssus 99% paper dirivatives is probably as good a guess as any. So the question remains can Barrick close its 525 tonnes of open contract on the LBME without causing a squeeze in the physical market. And I think your guard with only 1 bar tells the tale very well. Yes they can as long as no one actually wants to take delivery of the physical gold.Barrick's management has begun the process of toking important steps to free themselves from this potential trap. I feel they understand the significance of the European Central banks deciding to ban together and sign a formal agreement to stop the downside pressure that gold leasing has brought to bear on the price of gold over the last four years. In this new enviroment the ability to sell gold profitably in the future for more than the contango is not likely to be there as it has in the past . Barrick's past strategy has given it a giant power in the marketplace and if they don't lose it back by a foolishly sticking with yesterday's strategy then they will have come out of this thing much better than their competitors. I think they are trying to seize this opportunity and should be congratulated for their courage.This is after all the Barrick thread.Bet you didn't think you would hear me saying that?