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To: pater tenebrarum who wrote (110569)	6/28/2001 2:34:25 PM
From: Horgad	Read Replies (2) \| Respond to of 436258

In other words, if you want to buy a gold mining stock, buy an unhedged miner or if you want somebody to invest your money for you, pay a professional to invest your money or if you want a combination of both (with one half betting against the other half), buy ABX:)

To: pater tenebrarum who wrote (110569)	6/28/2001 3:33:33 PM
From: Rarebird	Read Replies (3) \| Respond to of 436258

In order for Gold to be set to rebound, it is critical that the Swiss Franc and the Euro hold above their most recent lows and that the Australian dollar does not break to new lows here. The Aussie Dollar is a leading indicator for Gold. Although Barrick has taken a lot of heat for being hedged, there is no doubt in my mind that the HM merger signifies that they are going to significantly reduce their hedge position in the future. In addition, on a valuation basis, Barrick is trading at roughly the same level as when gold was at $260 per ounce, even though its profits and production have increased materially. If money comes back into gold funds, managers will have Barrick near the top of their list, if only because its liquidity makes it easy to trade, and because its earnings history is among the most consistent of all gold producers. Moreover, if a major gold producer like ABX is not in favor of higher prices for gold, then it is obvious what is going to happen, at least in the near term. ABX is preparing now IMO for the next Bull Market in Gold. If you liked HM's assets, then you ought to like ABX here; for the shares will participate to the upside in a much greater degree as a result of the HM merger. I think HM had no choice but to merge with ABX or FN. HM went on an acquisition spree over the past few years, diluting shareholder value, mistakenly thinking that the Gold Bear would end in late 98/99. Don't get me wrong here: HM made some great acquisitions, especially Veladero, which was a steal and is still largely untapped. But the fact of the matter is that HM didn't have sufficient funds to explore and develop these properties. HM's hedgebook had increased this year as a result. If HM didn't merge with a big cash rich producer, their hedgebook would have ended up looking like a PDG or ABX if they went it alone. I know. It stinks. But that's the reality of a Bear Market. The bigger stronger cash rich companies end up acquiring the great assets of its smaller brethen. Don't underestimate the power of ABX on the POG. ABX has choices and is not married to its hedgebook.

To: pater tenebrarum who wrote (110569)	6/28/2001 6:26:40 PM
From: John Pitera	Read Replies (1) \| Respond to of 436258

Heinz, have you talked about Jack Kemp's WSJ piece on the gold standard today on this thread or anywhere? interactive.wsj.com

To: pater tenebrarum who wrote (110569)	6/28/2001 7:52:57 PM
From: craig crawford	Read Replies (4) \| Respond to of 436258

>> who says it will tank to 200? that's a pipe dream imo. << gold could easily hit 200. tell me why it can't. interesting that many on this thread believe the market is going down for the count yet gold will magically hold up? doubtful. if the market tankolas so will gold. your best bet is to hope the market rebounds in a big way. >> besides, since the gold indices have bottomed out in November of last year, ABX has been by far the worst performer: << you're absolutely right. abx has underperformed for the last several months. it has far outperformed over the last several years. >> iow, it has performed better during the bear market...but in a bull market it will underperform << hah! who says gold is in a bull market? >> it's also the most overvalued gold stock on a reserve valuation basis. why should i pay $100 per oz. of reserves in the ground when i can get them for $3 by buying unhedged Harmony? << i don't know enough about the specifics of harmony to comment, but obviously abx is viewed as more profitable in the current climate. >> i repeat, in a bear market there's no reason to buy gold mining stocks at all << perhaps some people just want to own gold stocks for the long-term as an insurance policy and aren't good at figuring out when to time bull and bear markets. they would have done much better with abx. >> (the joy of seeing the hedgers tank less i can do without... << umm, abx has far outperformed the nasdaq and the s&p 500 over the last 15 years! less hedged stocks like hm and nem have underperformed the nasdaq and s&p. proof is in the pudding! >> i want my stocks to go up, not go down). and in a bull market, the non-hedgers outperform by a wide margin. << like i said, if you are great at timing, i would say that abx is not your best bet. but it makes absolutely no sense for people to trash abx all the time and blame them for some worthless conspiracy theory when they are the best performing gold stock out there for many years! it's not logical for people to trash on abx and blame them for gold's problems when they have done the best for shareholders in such a trying period for gold bugs. but then most gold bugs aren't logical so why should i be surprised!