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

To: Gord Bolton who wrote (48619)	2/9/2000 12:18:00 AM
From: IngotWeTrust	Read Replies (1) \| Respond to of 116762

MRCI (nite) sez Plat up $36 right now, gold up $5.3 (hmmmm

To: Gord Bolton who wrote (48619)	2/9/2000 8:37:00 AM
From: Enigma	Respond to of 116762

Frankly I don't think many have understood Barrick's programme well - myself included. IMO that in itself has been Barrick's main PR problem. And a large part of it has been the fact that the programme has been a 'trade secret' the thing which has given it a huge competetive edge over its rivals - some of whom like Placer, NEM, and others have appeared like bumbling amateurs. But if you read the text of Barrick's news conference - they have bought calls at $319 and $335 or thereabouts for the next 2 years. They don't have to take delivery of the gold but can let the price ride. But they might find it every useful to have a call on that bullion. My theory is that the calls have been written (possibly through an intermediary) with CBs. Before anyone thinks that to be sinister they should remember that CBs have been prepared to sell at ANY price - so $319 and $335 looks pretty good to them from here. Also the gold would be sold and bought 'off market' I should think. And I think that the POG is warming to the ABX announcement - at least we seem to be seeing a bounce off $300 now. Of course the Barrick haters will continue to fight the last war - look for bogeymen under every stone - and miss the action on the stock. So, what if gold never makes the call prices? Barrick's cost would be the opportunity cost of the transaction - a buck or two per ounce - bearing in mind that the calls were bought in December 99 - way out of the money. And Barrick has already sold the gold for $360/oz. So if they get $358 - big deal?