Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: John Hunt who wrote (34164)	5/19/1999 10:47:00 AM
From: Enigma	Respond to of 116815

John - i think the word 'lease' is the problem here. If a producer hedges it has to sell short - to sell short it has to borrow the gold - and to borrow the gold it has to 'lease' it. It's an absolutely normal transaction. When it sell the gold it gets the cash - and it invests the cash. d

To: John Hunt who wrote (34164)	5/19/1999 10:48:00 AM
From: Gord Bolton	Respond to of 116815

I think it would be very easy for Barrick to ramp up production. They have several mines mothballed specifically for the day that POG rises significantly. The higher POG goes, the more economically recoverable gold they have. I agree that to a certain extent they are cutting their own throat but it is a cut throat business and they are betting that they will cut a lot of other throats first and pick up their gold properties cheap. I visited the Barrick web site recently and noticed that they have removed the list of their board of directors. Gold will always be a political metal.

To: John Hunt who wrote (34164)	5/19/1999 11:07:00 AM
From: John Hunt	Read Replies (2) \| Respond to of 116815

Barrick - Questions For The Futures Pros Can someone with expertise in futures please help me? If I am a large producer like Barrick and I want to sell a gold future contract for say June 2000 ... When do I actually have to deliver the physical gold? ... I am assuming June 2000 ... Am I wrong? I guess what I am also asking is whether there is anything like the Option Clearing Corporation that steps in the middle and guarantees both sides of the transaction? ... Does the buyer have any security other than a contract that I will deliver? :-)) John