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To: The Ox who wrote (6488)	1/12/1999 8:16:00 PM
From: NucTrader	Read Replies (2) \| Respond to of 14427

If you believe the Barron's article this past weekend, gold is headed into the dumpster (Cheryl Strauss Einhorn's column). Basically, the URL you sited confirmed one thing she said - decreased hedging with forward sales. If I understand the article correctly: gold producers have continued to overproduce in face of decreased demand. Only thing that has allowed them to do this, and is supporting the price of gold at current levels are the goldbugs. As reality sets in, it will become tougher and tougher to hedge through forward sales, and more and more producers will have to sell at the market (demand). At that time, actual supply/demand will dictate the price of the yellow metal. When that happens (it's already started, apparently, judging from decreased forward sales)- WATCH OUT! Very interesting article.