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: Crimson Ghost who wrote (65235)	3/9/2001 12:02:01 PM
From: russwinter	Respond to of 116764

From Leonard Kaplan today. Note his remark about producer buybacks. There was a interesting article in the Mining Web where J.P. Morgan discussed the extent of producer selling and its imminent prospects. Mr. James Wellsted of that firm, to quote, " the total industry book (including all derivative positions) fell 22% from 35.4 million ounces in December of 1999 to 27.5 million ounces in December 2000. Continuation of this decline seems unlikely considering a weakening dollar gold price, which may prompt active hedgers such as AngloGold and Avgold to increase their books". Rest assured, dear reader, that the proposed increase will absolutely not occur under the current conditions. Given a rising gold price and diminishing contangos, producers will be not be sellers. If anything, they will be buyers, and in size. This could have a very dramatic effect on prices. As I said earlier, all depends on the lease rates.