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

To: tyc:> who wrote (2646)	5/13/2002 12:26:42 AM
From: FuzzFace	Respond to of 3558

Please give me some credit. I know that forward sales is one form of hedging. Forward sales depress the price of gold. The rest follows from that simple fact. Hedging has aspects of the prisoner's dilemma in it. The best strategy is for everyone not to do it. Then they all suffer equally, but the pain is over sooner and total suffering (losses) are minimized for the group. If just one party does it, he makes out like a bandit at everyone else's expense. But that only lasts until the others catch on and do it too. Then once everyone, or enough of them do it, everyone loses much more than if no one did it.

To: tyc:> who wrote (2646)	5/13/2002 5:28:53 AM
From: nickel61	Read Replies (1) \| Respond to of 3558

Your comments pretty much sum up the entire situation. It is amazing that people who think interest rates might well have bottomed a year ago are still willing to claim that buying more bonds will not be a poor strategy. The only way they can even make this claim is if they think the US dollar will not fall in value against gold and that the marked to market value of the bonds they buy is irrelevant because they "never intend to sell the bonds but instead intend to keep them to maturity, therefore not "losing any money" this is funny when an old lady says it but it is pathetic when someone commenting on a financial structure of a publicly traded company claims it." Don't they realize that the value of the bonds will still be reflected in the market value of the stock of the company that is pursuing this strategy. Barrick in this case...give me a break what could be more basic?