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Gold/Mining/Energy : GOLD-XAU -- Ignore unavailable to you. Want to Upgrade?

To: Janice Shell who wrote (1045)	1/6/1998 11:56:00 AM
From: IngotWeTrust	Read Replies (2) \| Respond to of 1756

Ex. Qs, Janice. First of all the SEC approved this 'un back in the rocking and rolling 80's after gold went to the moon and folks were clamoring for something "futuristic" trading like the metals themselves do on Comex, in order to hedge their (relatively)large cap Gold stock exposures. Therefore, it is my opinion XAU squeeked thru as a better than nuttin' and has survived because of its wide acceptance. It is now a reallllllll money maker for the Philadelphia Exchange, which is its home. The new Amex HUI of Hewey Dewey and Luey fame...has had a much harder time and hasn't gained much respect at all...and I suspect won't. There's no way Joe/Jose Blow in the street can play "whose hedged and who isn't" HUI game. If it ain't broke, don't fix it! is the motto of these hedger XAU guys, and for once I tend t'agree! RE: your 2Q, again, my opinion, it will be these big 3 that will be the "acquirers" + Homestake. BUT, if Homestake's recent action is any guide, the Big 3'll be buying high reserve/low projected costs future producers (such as Arequippa and ABX) OR micro-juniors producers currently NOT in this exchange traded contract spectrum. This may affect share price individually, but it should decrete them, not acrete them at first blush, which would give the Philly boyz a chance to "adjust things" which they've demonstrated glacial speed in the past... If Philly exchange follows historical 15+ yr norms, they'll just tinker and jigger to keep the existing hedgers happy. Hope this helps... O/49r