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

To: Casey who wrote (7520)	2/12/1998 9:28:00 PM
From: Mark Bartlett	Read Replies (1) \| Respond to of 116986

Casey, <<It would be nice to get someone who really understands this to post, but I believe that Barrick will unwind their hedge by delivering gold from their own production to the holder of the long side of the hedge position. >> As far as I am aware, they could take from their own production, but would it not make more sense for Barrick to slowly accumulate what they need on the spot market and use that for delivery. As long as they can pick it up on the cheap, they would be in the money. If WB can accumulate 127 million oz of silver, I suspect Barrick can too. According to the book "The World of Gold" by Timothy Green, the world of gold hedging programs is extremely complex .... I suspect that unless you are the inside, you never really know all that is going on. I know they can hedge with options, futures, gold loans, and other instruments (and variations I do not understand such as ... participating forwards, flat rate forwards; options known as forward starts, barriers, binary, compounds, lookbacks etc. ........ this gold biz is a complex issue <g> All the best, MB