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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: terry richardson who wrote (11858)	5/10/2002 2:31:30 PM
From: terry richardson	Respond to of 36161

If anyone needs a fix there's one here... ---------------------------------------------------------- marketwatch.com{6DF826ED-429D-4732-AA49-128747DD5497} Walloped dollar to accelerate gold Toronto veteran explains the de-hedging scenario .... A month from now, a year from now, five years from now - you choose the timing, because I won't - the price of an ounce of gold will be three to six times what it is now. By then, the world's money flows will have stopped way short of the fiber-optic fork in the ocean that leads to New York..... ..........McAvity up there in Toronto on Friday told me a story, complete with charts and press releases from long ago, to illustrate how powerful the rush to de-hedge can be in a rising gold market. In May 1993, a company called Lac Minerals, now operated by Barrick Gold (ABX: news, chart, profile), announced they had decreased their hedge book to 85,000 ounces from 585,000 ounces. The company said it was doing so "to take advantage of rising gold prices." The average price they achieved on their remaining 85,000 ounces of hedged gold was $333 an ounce. When the announcement hit the wires that day in May 1993, McAvity coined what came to be known as the "Lac gap." The price of gold gapped up to first $363 an ounce, then higher and higher. By summer, the price would reach $407 an ounce, not bad for a metal that began the year at $328. ---------------------------------------------- When not if. Regards T.