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

To: C Hudson who wrote (48615)	2/8/2000 11:08:00 PM
From: Gord Bolton	Read Replies (1) \| Respond to of 116759

THE GAME IS........ ON Feb. 8-MAR-- [B] Bridge Futures Outlook: Gold sensitive to mine hedge plans By Melanie Lovatt, Bridge News New York--Feb 8--COMEX gold futures prices are likely to stay vulnerable to any changes mining companies make to their hedging plans after gyrating the past few days on moves by two Canadian producers. The April contract was pushed up a huge 8% Friday after Placer Dome said it would suspend its hedging this year. It then tumbled $ Monday when fellow Canadian gold miner Barrick Gold Corp. failed to meet expectations that it would repeat Placer's move. * * * Instead, Barrick announced it had only halved the gold under its hedging program, leaving it with a relatively large 9.8 million ounces still hedged. Market players are still nervously awaiting further news from producers in North America, Australia and South Africa to see whether they would follow Placer Dome and suspend hedging activities. Although many gold market players have suggested that central bank gold sales were the culprit behind the metal's drop to 20-year lows in 1999, others maintain that hedging--price protection taken out in the form of forward gold sales and assorted option strategies--also played a part in capping prices. Reductions in the amount of gold hedged by producers are bullish for the market, and the dramatic price reaction Friday and Monday illustrated this point, analysts and traders said. Nevertheless, some of them think that other mines must follow suit before gold prices can be re-energized. Lately gold's reaction to recent daily stock market corrections or tumbles in the dollar or bonds has been anemic, even though it is supposed to act as a safe haven or alternative investment. With central bank gold sales likely to continue to exert pressure on the market, if other mining companies cut their hedging programs, they could provide gold with the shot in the arm needed for more buoyant prices. End Bridge News, Tel: (212) 372-7562 Send comments to Internet address: futures@bridge.com [slug: Futures-Outlook] The Bridge ID for this story is 01275

To: C Hudson who wrote (48615)	2/9/2000 7:00:00 AM
From: Crimson Ghost	Read Replies (1) \| Respond to of 116759

Forget about hyperinflation in the US. Historically major industrial nations have only expeienced hyperinflation after being defeated in major wars as Germany was in World War 1. Hyperinflation is out of the quesation in the US as long as it maintains its position of international dominance and the dollar serves as the de facto world reserve currency. That said, inflationary pressures in this country will pick up substantially as long as the stock mania continues. In time this will be a big plus for gold and gold shares.