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

To: James F. Hopkins who wrote (9090)	3/31/1998 11:38:00 AM
From: long-gone	Read Replies (2) \| Respond to of 116756

Jim, Don't even know about all miners, "producers" i'm invested in are hedged based on projected year's production. If POG were to go up, I suspect they could increase production(put on more workers or OT)to sell balance at better price. Also, most have shut down many other mines,so these could also be put back into production. I've guessed that effect of futures play on POG is (at best) short term.Think the greatest key will be demand.This demand will be created when this "buy the index fund" herd type thinking is proven wrong. Other demand factors I see will be the coming increase in the population of India,Y2k,& medical usage. Indian population is projected to pass that of China around year 2005. I understand the fastest growing portion of the population is the middle class. These may be the greatest buyers(per capita) of gold in the world. rh

To: James F. Hopkins who wrote (9090)	4/1/1998 10:10:00 PM
From: Greg Ford	Read Replies (2) \| Respond to of 116756

Scotia McLeod in Canada puts out a hedging survey quarterly that details forward and option positions of North American producers. I can't remember if it deals with Australian and South African producers. The report is interesting reading. Barrick for example has over 10 million ounces hedged. That means that the upside if gold moves to the hedge price level is already factored in to Barrick's price. I don't follow your logic regarding puts. The puts will only be exercised if the price is below the put strike. Most of the dealers that have granted the puts have already hedged their exposure. It is unlikely that anybody who granted the puts will try to push the price higher so that the puts will not be exercised. The cost strictly in cash outlay terms would likely be far greater than closing out the puts. Greg