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

To: Enigma who wrote (48065)2/5/2000 10:16:00 AM
From: russwinter  Read Replies (2) | Respond to of 116753
 
"if we get a quick run to $400 I see hedging starting all over again"

Of course one scenario in a quick run will be the final curtain for companies like ASL and Cambior (and others?) as well as about half the marginal Aussie producers and trading desks that arrange these strategies. If so, the whole hedging strategy will be so discredited that capital sources (banks always fight the last war) may actually require developers NOT TO ENGAGE IN FORWARD SALES beyond say six months production, and certainly avoid call writing totally.



To: Enigma who wrote (48065)2/5/2000 12:01:00 PM
From: re3  Respond to of 116753
 
<<<BUT - if we get a quick run to $400 I see hedging starting all over again. The pressure to lock in high prices will be irrestible.

i'm not so sure of that. shareholders want non hedged golds, the fear of being 'ashantied' will see to that. and why worry about what happens at $ 400 ? many of us will take 400 ! one call always sell half their position on a double and let the rest ride...


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