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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Sully- who wrote (52405)	5/30/2002 4:41:38 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 65232

John Hathaway, manager of the Tocqueville Gold Fund (TGLDX), has just published at the Tocqueville Internet site a wonderful new essay that complements the recent essay by Robert K. Landis about Barrick Gold at www.GoldenSextant.com, and echoes what you have been hearing from GATA Chairman Bill Murphy. An excerpt from Hathaway's latest: "What is happening in the gold market currently is that the hedged mining companies, after having taken a pasting in the form of share underperformance and vocal criticism from the investment community, are beginning to capitulate. Recently, Durban Roodeport, a South African mining company, raised cash through a new share issue. The use of proceeds was to purchase gold on the open market in order to close out its hedge book. Other miners have been quietly writing puts at strike prices below the market, in the hopes that they will become long gold on pullbacks. However, the proliferation of puts only serves to put a floor beneath the market. Several prominent hedgers, including Anglogold, have reduced their hedge books and numerous others have stated that, at the very least, they will not increase their hedge books and are in the process of reviewing their hedge exposure. The intellectual case for hedging appears to be in tatters and there appear to be very few who would advocate it vociferously. The recent rise in the gold price has all the appearance of a slow-motion short squeeze, which could well get out of hand if too many rush for the exits." You can find Hathaway's essay here: tocquevillefunds.com CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc (GATA)