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

To: Enigma who wrote (3237)	1/4/2003 10:43:06 AM
From: loantech	Read Replies (2) \| Respond to of 3558

Enigma, I take umbrage at this statement <Tom Dick or Ken can take pot shots> <g> I have had to live with Dick and Harry, been tomfoolery, peeping tom and tom turkey and now this. <g> I for one do not understand the complexities but look at the simple chart I put up a couple of posts back. I think they show in a flat or downward POG market ABX is a winner. In a rising gold market NEM is the winner. So an investor has to figure out which direction gold is going to decide which one to buy. Or is that too simple? Tom

To: Enigma who wrote (3237)	1/4/2003 10:54:16 AM
From: tyc:>	Respond to of 3558

>>their hedging policy is difficult for the layman to understand Yes but the layman certainly understands the risks of holding gold ! What proportion of his assets do you suppose the average man allocates to gold ? Why so low ? Simply because of its risk ! Barrick is my choice of gold producer because it hedges? I see it as a form of diversification. Part of the gold in the ground is sold in advance and the proceeds of the sale are invested in bonds. Thenceforward, the company is mining gold and bonds. What could be simpler ? The bond element yields to the company a bond return at the lower risk associated with bonds. The (unhedged) gold element will no doubt produce a higher return but at greater risk.... the amalgam is a stock with perhaps lower returns than an unhedged producer, but also less volatile (i.e less risky). It satisfies me, and that's what counts.