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

To: Hawkmoon who wrote (54259)	6/14/2000 12:35:00 AM
From: long-gone	Respond to of 116762

<<A couple of companies stating they are reducing their hedging strategies is a different thing from actually accomplishing it.>> Did you even read the post or are you simply spouting(more) propaganda without any regard for the truth? the word - CONTINUE - was used. this means they have REDUCED their hedge position! Simply admit the truth & move on - or better yet simply move on!

To: Hawkmoon who wrote (54259)	6/14/2000 12:56:00 AM
From: long-gone	Read Replies (1) \| Respond to of 116762

exactly what about the word "SUSPENDING" don't you understand? your exact quote - <I see you're unwilling, or unable, to provide any concrete examples that describe how the gold mining industry as a whole have ceased undercutting the market for the metal through derivatives and hedging.> Note the words mid 1999 "INTERVIEW-AngloGold continues to wind down hedging By Belinda Goldsmith CANBERRA, March 16 (Reuters) - The world's biggest gold miner, South Africa's AngloGold Ltd , said on Thursday it would continue to unravel its gold hedge book in a bid to further unshackle world bullion prices. Chief Executive Bobby Godsell said AngloGold had changed its hedging programme as an instruments of risk management in mid-1999 on a bet that at $250 an ounce gold was oversold and ready to rocket." and from later on "Canada's Placer Dome Inc (Toronto:PDG.TO - news), the world's fifth largest gold miner, announced it was suspending its hedging programme in February. This triggered a rise in the spot gold to $319." BTW AG said that statement was taken out of context, & did not dictate anything which would occur, only what might happen. Haven't you heard about the NY accord?

To: Hawkmoon who wrote (54259)	6/14/2000 9:06:00 AM
From: B.REVERE	Read Replies (1) \| Respond to of 116762

Someone appears to be covering. Australia gold trade says mystery buys spur spike Reuters Company News - June 14, 2000 02:39 Jump to first matched term SYDNEY, June 14 (Reuters) - A spike in gold prices was believed to have been caused by a significant gold producer closing out hedge positions, with the play possibly not over, Australian analysts and traders said on Wednesday. But the identity of the company involved, despite apparently inaccurate rumours that it was Delta Gold Ltd , remained a mystery. "Until that mystery is solved the action cannot said to be over," one analyst said, asking that he not be named. Most Australian analysts contacted on Wednesday believed that hedge buybacks had been behind a US$7-plus spike on Tuesday which led to further early gains in European trading before they subsequently evaporated. Most focused on rumours that Delta Gold, which suspended its mining operations in the politically tumultuous Solomon Islands last week, was behind the buybacks. A Delta official told Reuters she had "not heard" of the company being engaged in buybacks, while on balance traders tended to discount Delta buying back. Delta was comparatively lightly hedged and could handle any required delivery of gold itself, analysts said. One leading gold analyst, after spending much of Wednesday attempting to identify the source of the buybacks, said he had eliminated the major Australian producers of Newcrest Mining Ltd and Normandy Mining Ltd . And the market was saying that it was not Delta, he said. This analyst put the size of the position which was closed down on Tuesday at 300,000-350,000 ounces of gold or even more. That was enough to move gold in Australian/Asian trading up by US$3.50 to $290, then on to $293 in Europe. "There was panic covering of some short positions by hedge funds. When they found out it was just due to closing out a forward position by a producer the price just drifted back again," he said. This left gold trading in the US$286.50/7.00 range by Wednesday afternoon in the Asian/Australian time zone. "Something did happen. Who it is is still open to question," a trader said. If a producer of Newcrest's stature was closing out positions, Tuesday's action could be a precursor to further such moves. But it would not be known if the gold play was over until it was discovered which producer was behind the buyback, he said. "You can't say it is over until you find out who's actually done it," he said. More hedges could have been closed out on Wednesday, he said. "A certain amount of conjecture out there as to what is actually going on." Copyright 2000 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Headlines Previous Story Next Story