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Strategies & Market Trends : Winter in the Great White North -- Ignore unavailable to you. Want to Upgrade?

To: kidl who wrote (5249)	11/21/2003 8:42:47 AM
From: Rocket Red	Respond to of 8273

Barrick changes policy, drops gold hedging 11/21/2003 8:19:34 AM By Veronica Brown LONDON, Nov 21 (Reuters) - Barrick Gold Corp (CA:ABX) stunned bullion markets on Friday by saying it was changing its hedging policy, and is no longer committed to selling the metal on forward markets as it is now cash rich. "The commitment to hedging is gone...Hedging to us is no longer a requirement for running our business as it no longer creates shareholder value," Barrick Chairman and founder Peter Munk told reporters on the sidelines of a gold investment summit in London. "Hedging was a means to overcome cyclicality. Over the next decade, we will do no more hedging," Munk added. Spot gold , which had been trending lower on the back of a steadier dollar, reversed direction and jumped nearly $4.00 an ounce on the development to around $397.00. At 1311 GMT, prices were at $396.50/397.30 an ounce, up from Thursday's New York close of $393.30/394.00. "It's a bit of a knee-jerk reaction, but will set a good base for the New York open," a trader said. As Canada's biggest gold producer, Barrick is the world's second-largest gold miner by market value and one of the largest bullion producers. ABOUT-TURN FROM PREVIOUS POSITION On Thursday, Munk had extolled the virtues of hedging by Barrick, which has one of the largest gold hedgebooks in the industry. In an address to the conference Munk had said hedging via forward sales was a key factor in funding exploration and development projects. "There is no other more fundamental responsibility on a group of people who run a mining company who every single day extract reserves, which are their only asset, than to replace them," he said on Thursday. Last month, Barrick CEO Greg Wilkins said the hedgebook was too big, and that it wanted to cut it back by about one third to 20 percent of gold reserves. Toronto-based Barrick has one of the largest hedge books in the gold industry, which is equal to around three years of output. The book currently consists of about 16 million ounces of gold that has been sold forward. Gold's rise over the last couple of years to levels last seen in 1996 has largely followed from miners buying back previously hedged positions, although the pace of so-called de-hedging is slowing. Earlier this week gold reached $400.25 an ounce. (Additional reporting by Clare Black) © Reuters 2003. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

To: kidl who wrote (5249)	11/22/2003 8:42:34 AM
From: Stephen O	Read Replies (1) \| Respond to of 8273

I just use a spread sheet to keep track of multiple buys and sells and come up with average cost to use when I make a sale. The brokerage account keeps track of dividends etc as they provide that info at tax time. However I agree that using a computer like this is the way to go.

To: kidl who wrote (5249)	11/24/2003 1:45:18 AM
From: marcos	Read Replies (1) \| Respond to of 8273

The pencil and paper is for me a backup system, for when the computer goes down, or the net, or the broker's site, or whatever ... the record is mostly for those times when the house screws up your order, which doesn't seem to happen much any more, but it could .... as for acb, i keep kind of a running balance going in my head, it's probably quite inaccurate often because i rarely buy or sell all of a stock on one day, usually scale into them and then scale out, add some or let some go even on long-term holdings ..... but it doesn't matter much imho, i have little interest in computing things up daily or weekly, think it might be bad luck, like counting your chickens .... for tax purposes i just take the summaries the houses send at the end of the year, calculate acb and gain/loss on an net annual basis from them, and notate the very same summary to that effect - in pencil -g- .... haven't been called on this yet, mind you i haven't been audited on trading for over ten years It's really quite fast to jot stuff down, i can do it thoroughly while the next order entry pages are loading ... that's the beauty of old machines on dial-up, you get lots of chores done in between pages -g- ..... cheers