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Gold/Mining/Energy : Barrick Gold (ABX) -- Ignore unavailable to you. Want to Upgrade?

To: nickel61 who wrote (2638)	5/13/2002 2:24:55 AM
From: russet	Read Replies (1) \| Respond to of 3558

Barrick will appreciate with all other gold producers, because they have just as much, or more gold unhedged as all their competitors. You have chosen to attack Barrick in particular because you disagree with hedging in general, even though the practice is widespread in many industries. Your crystal ball on gold, is no better than anyones. Basically no one knows where it is going, and history suggests it goes sideways or down more than 95% of the time. So when a spike up comes, you get unhedged,...and when it peaks and looks to be running out of steam because demand starts exceeding supply, you hedge the high price and add to revenues by investing the borrowed gold, and make a killing as the POG goes down.