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

To: Sharp_End_Of_Drill who wrote (16915)	8/5/2002 8:05:03 PM
From: Cogito Ergo Sum	Respond to of 36161

siliconinvestor.com Quite a bit of debate on this on the Barrick thread earlier.

To: Sharp_End_Of_Drill who wrote (16915)	8/6/2002 9:41:23 AM
From: Jim Willie CB	Respond to of 36161

Barrick and others sold about 3-4 years of future production and they did so when gold was lower in many cases so as gold rises, those heavily leveraged forward sales are at a very large and growing loss it can be argued that Barrick is a corporation that was set up in order to capitalize on a falling gold price, and risk implosion with a rising gold price what if 25% of their forward sales were 5000 contracts of June2004 gold locked at #280 ? (they might have made such contracts in early 2000, when that seemed smart) OUCH, but just an example / jim