Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Samex Mining | OTC:BB - SMXMF | Canada - V.SXG -- Ignore unavailable to you. Want to Upgrade?

To: Travbfree who wrote (411)	2/7/2000 12:15:00 PM
From: Travbfree	Read Replies (1) \| Respond to of 539

(This article by Bill Murphy starts at post @410 and reads in sequence to #417) This is potentially very bullish news because this decent amount of gold will not be available for sale or lending in future years as the gold bears have claimed would be the case. The Ashanti lawsuit is extremely bullish news as it puts senior gold producer executives and board members on notice that they might be sued personally if overly aggressive hedges damage a stock price in a sharply rising gold market. The theatre of the absurd played out again behind the scenes with this scenario: Esteemed boards of directors of heavily hedged gold producers are choking because the gold price is exploded, something they should be thrilled about. Think of how incomprehensible that would be for any other industry that sells a product. In Thursday's commentary I pointed to how the yen move in 1998, the gold move of last September, and the recent bond market moves have been violent, unprecedented, and ruinous to certain financial firms. It appears that the derivative-related blowup of Long- Term Capital Management and its subsequent bailout did little to stop the derivative trading frenzy for firms seeking greater and greater profits. Greed and hubris thrive. Few market participants were prepared for the lightning speed in the yen, bond, and gold moves. That is why there was so much pain for those on the wrong side of the trade. If there is anything to this "new era" market talk, it is that the trillions of dollars of derivative trades out there are causing certain markets to move with force and speed like no one has ever seen before or is prepared to deal with. Market meltdowns or meltup, are likely to occur with even greater frequency. The leading candidate now is gold. (This article is continued on post #413)