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Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: Ron Everest who wrote (6178)	6/5/1999 5:13:00 AM
From: d:oug	Respond to of 81050

Ron, I followed the url and read many posts using it as a jumping off point. This thread was started by the now president of GATA and to me it would be on-topic to pick any of the items being addressed by GATA and have a discussion here. Upfront the Central Banks and US Fed have had X's placed on them by GATA for identification as the "enemy". I have also read that some big gold producers may be "helping" the enemy of GATA carry out the deed. Am I on target here, as for what you wish to be discussed ? I found this someplace on my reading from the url you supplied, and it looks like the gold producer Barrick is making good money while others are not and some or most of the smaller ones are near the end for staying in business. Sounds like this big fish wants to grow and is looking to eat lots of small fishes. Ok if its all done as being in the right state at the right time under thr right conditions that were created thru normal market conditions, and not thru unlawful means as those suggested by some of pro-GATA writings. ........ Offsets using derivatives are a sensible way to ensure that your margin stays in tact.....providing that your counterparty is of substance and is still around when you need to collect. There is often a cost as this can be seen to be a type of insurance to maintain your margin. The risks of not hedging are significantly greater. My understanding of ABX's position is that they sold a number of years forward at substantial prices ie: US$400 or so. They have in fact hedged their future production to receive this amount for each ounce produced. If they can reduce their cash production costs then their margin is enhanced. In hindsight, ABX made the right decision and will certainly maintain their production margin and WILL be in business long after many others have folded due to low AU selling prices. Smart business on the part of Peter Munk and ABX, way ahead of most of their competitors. I would venture to say that with the next large uptick in gold (assumption, but...?) ABX and most others still in the business will be again selling forward. Stragegy or not, the cash being generated by ABX can now be used to buy up opportunities as they present themselves. Bet there is a small army of ABX team players in the "war room" researching each and every opportunity that presents itself. .......