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

To: long-gone who wrote (55829)	7/6/2000 10:41:48 PM
From: Enigma	Respond to of 116796

The truth is that gold mining is for some major producers a highly profitable business. Some on this thread expect them somehow to curtail - even shut down production - lay off thousands of miners. It won't happen. If one major producer cut production by 95% I don't think it would give rise to charges of price fixing - of course they would be considered soft in the head - committing business hari kari - but at least they would please nota bene! I think there must have been a lot of secret meetings between the majors about concerted action on production levels - I should think it's an ongoing thing. I'm sure that the key is production not hedging as such - hedging has been going on for many years now - it's a fact of life. And if I were an executive contemplating a billion dollar project I would want to hedge productio from it - and my shareholders would appreciate that I was taking away the price risk - and my bankers would insist on it. There are some here who would see this as sinister - but it's simply good business practice. Every day in tens of thousands of transactions involving foreign sales the currency risk is eliminated by hedging. It's normal, par for the course.