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

To: russet who wrote (2652)	5/13/2002 5:06:21 AM
From: nickel61	Read Replies (1) \| Respond to of 3558

Yeh no kidding...what do you think I am trying to get them to do? Reduce their hedges! T The market would correct to a more normalized level if the hedged gold producers covered their hedges, there might even be a short covering rally. The fair equilibrium price is most likly well north of $400/ounce. If Barrick and the other heavily hedged producers reduce and eliminate their excessive hedges(normal hedging to protect revenue is one to two years not the fifteen year extravaganza that Barrick is currently involved in) the price will likly rise. If they don't or can't do it(reduce their hedges, that is) they stand the chance of being the last hedged miner in a major market rally. You think a major gold price rally is impossible. I think you are poorly schooled in monetary policy. We will see who is correct.