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To: Rarebird who wrote (110592)	6/28/2001 3:46:22 PM
From: Real Man	Respond to of 436258

USD about to break. Just my opinion.

To: Rarebird who wrote (110592)	6/28/2001 4:45:01 PM
From: pater tenebrarum	Read Replies (1) \| Respond to of 436258

i agree with your view on the currencies' importance , but would like to point out that gold has acted remarkably well IN SPITE of the strong dollar (the past two trading days obviously weren't that great). i have an as of yet unproven pet theory that the importance of the dollar's relative value to other fiat confetti on the dollar price of gold will continue to recede.the inverse correlation is so widely accepted as gospel that i'm beginning to wonder...but it's certainly true that a weaker dollar can't hurt. re. ABX/HM, i see the merger in the same light. ABX has found a relatively cheap and painless way to reduce its hedge exposure, and i applaud the move from their PoV. of course, as a former HM shareholder i would have preferred an independent HM, but it's not the end of the world. i simply switched from HM into Harmony (and a bit of NEM) and bought some long dated HM calls, so i continue to have an interest. as an aside, it's interesting that HM's hedge book increased at exactly the wrong moment...right near the lows (not that we're very far from them anyway). note however, the two SA producers HGMCY and GOLD continue to prove that even in this challenging market one can stay completely unhedged and still produce very respectable returns. in spite of the fact that their mines are actually high cost mines, very deep mines that are difficult to mine. ABX's properties are generally lower cost properties.