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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Chispas who wrote (43845)	1/4/2006 8:56:10 PM
From: LLCF	Read Replies (1) \| Respond to of 116555

<"Barrick simply assumes that what goes up must come down. If the gold price goes up, say, $200 per ounce, then it is duty bound to come down at least that much in due course.Barrick and others will, therefore, always be able to close out their deals at a profit.> My understanding is that 'hedge' implies they are selling their production forward and that they will simply deliver gold against the sales. Selling gold forward thinking you're going to buy it back cheaper and necessarily make a profit is NOT a hedge. <The truth remains, however, that all Barrick has accomplished is to have swept margin calls on its gold-borrowings under the rug, thereby concealing the potential liability from its shareholders and creditors. Therin lies the fraud, which SEC and other watchdog agencies of the US government should uncover and expose. Instead, they adopt the 'hear no evil, see no evil' attitude.> Really? How do you sweep margin calls under the rug??? Did they get called or not? Sounds like a lot of hyperbole. That said, we could use a good panic buying spree by I-Banks in the gold market that a good scandal would cause! :)) DAK