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 : Ontex Resources (ONT Alberta) -- Ignore unavailable to you. Want to Upgrade?

To: robbwharry who wrote (509)	12/24/2001 10:25:11 PM
From: mark warburton	Respond to of 519

I am not so sure that hedging will end, but I do believe the low interest rate environment makes the gold carry trade a very precarious business to be in. When you subtract the borrowing costs and add in the risk factor, the game isn't worth playing anymore. If these positions are unwound for there intrinsic value, gold will be free to move, and if they are not unwound, larger positions will be needed to defend their initial positions. We will see. Best wishes for everyone over the holidays.