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Pastimes : All Clowns Must Be Destroyed -- Ignore unavailable to you. Want to Upgrade?

To: clochard who wrote (7193)	2/6/2000 7:29:00 PM
From: re3	Read Replies (1) \| Respond to of 42523

crbindex.com

To: clochard who wrote (7193)	2/6/2000 7:29:00 PM
From: pater tenebrarum	Respond to of 42523

Steve, much depends on ABX's analyst love-in on Monday...if they announce they're going to suspend hedging, or that they have covered part of their book, it'll be off to the races. the chances for that to happen have vastly improved with the Placer Dome announcement, the Ashanti lawsuit and the Gold Field's chairman's press release in which he denounces the current level of producer hedging as 'out of control' and 'not in the industry's interest'. ABX's management is clearly under pressure to do SOMETHING. in the past they have tended to publicly talk their hedge-book, i.e. tried to talk the price down. if they do that again and it DOESN'T work, that would be even better. anyhow, all eyes on ABX next week... maybe the pressure will be increased by other producers jumping the hedging ship.... in sum: i really am not sure if this is another fake-out. from all i can glean, a rising gold price is not what officialdom likes to see, as it indicates inflation may come back. however, the fact that huge rallies seem to literally come out of the blue of late, speaks volumes about how skewed this market is...just about every gold loan the CB's have made over the last year is underwater at current prices (for the people who borrowed and sold the gold). that actually suggests that there may be no takers for whatever gold the CB's are still prepared to lend. after all the risks the shorts are facing are subject to rather forceful demonstrations lately. and poof! there goes another source of supply...