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

To: mick who wrote (27293)	1/29/1999 3:28:00 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 116763

Wait a minute... Are you talking about someone buying gold at $400/ounce of their free will, or the fact that this gold was "put" to them at that agreed on strike price. Hedging means that these companies buy the RIGHT to put their gold to a buyer at a certain price. These companies are exercizing their right to sell at $400/ounce. I'm sure the buyer isn't happy about the bath he is taking, but maybe he was hedged in another way. This is no indicator, IMO, that there is a shortage of gold. It is an indicator of a savvy mining company selling off their gold assets at a price well above market. Tell me where I'm wrong in this. Regards, Ron

To: mick who wrote (27293)	1/29/1999 11:43:00 PM
From: Little Joe	Read Replies (1) \| Respond to of 116763

I don't think you are interpreting the information you have correctly. These are transactions to sell gold in the future at a certain price. If you check out the commodities page you will see that gold and nearly all commodities for delivery in the future sells for more than gold for immediate delivery. This is because there is a premium for storage, insurance, interest carrying charges, etc. consequently, hedged gold can be sold at higher prices, even by mining companies that don't necessarily incur these carrying charges. I have seen nothing in the information you provided that suggests that there is a private market for gold where it is selling above the price s that are quoted. Live long and prosper, Little joe