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

To: Ken Benes who wrote (55241)	6/27/2000 10:03:00 AM
From: pater tenebrarum	Read Replies (1) \| Respond to of 116753

i don't think producers recognize anything. i fully agree with you, they're a pathetic bunch. if they'd announce production cutbacks the market would get the shot in the arm it needs to get the price going. but they're too dense for that. mothballing marginal mines until the gold price improves would do wonders for their earnings as well... hb

To: Ken Benes who wrote (55241)	6/27/2000 11:03:00 AM
From: Alex	Read Replies (3) \| Respond to of 116753

Ken. As I've said in the past, I agree with you that producer hedging is helping to kill the gold sector. Every forward sale of an ounce of gold leads to that ounce being sold after it's borrowed from a cb. This, of course, makes little or no sense for either the producer or the cb. What good does it do a producer to sell an ounce forward at $290 that will cost him closer to $400 to replace? Surely its' intrinsic value has to at least be it's replacement value? And what good does it do a cb to lend this ounce out, in the name of return, when it loses five dollars in capital for every one dollar in interest it earns? But there you have it. Alice in Wonderland.