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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Alex who wrote (2879)	11/6/1997 2:48:00 PM
From: Ahda	Respond to of 116823

Going to be very interesting Alex to see how this is done when mines arn't producing and someone ups and wants delivery.

To: Alex who wrote (2879)	11/6/1997 10:44:00 PM
From: Claude Cormier	Read Replies (1) \| Respond to of 116823

<< The company representative goes to a bullion dealer who agrees to pay him, for example, $500 per ounce for Gold to be delivered two years from now. The Gold company has locked in a profit, and on top of that, has the money now for Gold which is still in the ground. >> I don't think that this is right. The Gold company gets the money and profit once the gold is deliver several months years down the road. It will get a profit immediately only if it buys back its contrat at a lower price before delivery time. Maybe I a wrong, but that is the way I understand forward sales mechanism. The rest of the story is just fine.