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Politics : Gold and Silver Stocks and Related Commentary -- Ignore unavailable to you. Want to Upgrade?

To: Claude Cormier who wrote (10558)	4/8/2005 10:04:33 AM
From: tyc:>	Read Replies (1) \| Respond to of 18308

Thanks for your reply >Juniors can certainly be shorted as well. But this game can be a lot more risky than shorting seniors Perhaps not so risky if your short is hedged by a holding of warrants ? >>Very few growth stocks in this sector Well there's always growth by acquisition. But there's a "junior" in every senior and intermediate gold stock. AGE has just undertaken an exciting exploration venture in Mexico. Northgate's future depends upon exploration success (or acquisition) financed, not by dilutive underwritings, but by cash flow. And surely Barrick itself with its string of new mines to come, is growing from exploration efforts. Seriously, with your confidence in the future of gold prices, why hedge by shorting the sector at all ? Doesn't diversification on the long side produce the same reduction of volatility ? One thing, it sure confirms that hedge shorting does not imply that a decline in prices is anticipated.