From Ted Slanker Report : "Barrick the Hedge Fund?
Barrick is short 12.5 million ounces of gold (just over three years of its gross production, or an amount equal to all of the gold the Bank of England plans to sell). This is just like the hedge fund LTCM and all the other hedge funds that have borrowed gold to gain cheap dollars to invest elsewhere. What is crazy here is that Barrick thinks it is in a very safe position because it has a mix of options and derivatives that are supposed to offset a drop in currency values, which would be a rise in golds value. It brags that all of its derivative contracts are with A-rated companies like itself. Throughout history, there have been a lot of A-rated firms that went under. And if A-rated firms are betting against money (gold) and creating offsetting hedges for others in the billions of dollars, then somebody is probably getting cornered.
In my book, Barrick is more hedge fund than gold miner. Its plan has certainly worked so far. But it does not give me a lot of confidence about our position in the stock, which we received when Barrick acquired Sutton. For the short-term, Ill keep in the portfolio, but its not my favorite gold stock holding."
Ted Slanker Report
And this is from GATA chairman Bill Murphy and LeMetropole Café Edditor (he is a veteran gold analyst and leads the entire gold community in the effort to stop the gold manipulation)
From Bill Murphy and Cafe
"South African gold mining company Gold Fields Ltd bought around 12% of the gold auctioned by the Bank of England today and is prepared to do so again at subsequent auctions, according to GFL chairman and chief executive Chris Thompson.
Asked whether his company would be prepared to make further purchases at subsequent auctions by the BOE if the price was right, Thompson said: "I think so. We've got to stand by our product. It's time for the industry to stand together."
Anglogold, the world's biggest producer, said it had been interested in buying at t
Ah, you are aware, aren't you, that Barrick closed its hedge book in 2009.
Tue Dec 1, 2009 3:45pm EST
TORONTO, Dec 1 (Reuters) - Barrick Gold Corp (ABX.TO) said on Tuesday it had completely eliminated its fixed-price hedge book, allowing the company to take full advantage of rising gold prices and sparking a 7.6 percent rise in its shares.
Perhaps appropriately, the announcement came on a day the price of gold hit $1,200 for the first time, as the hedges -- which totaled 3 million ounces before Barrick began buying them back in September...
ahem the reason though of me bringing that up is that abx has used their new mine that they dont own to hedge.
which was very bad of them.
and conspiring with jpm to lower silver prices before is not good for their reputation.
I would rather people here own NEM GG etc instead of this POS that tried to steal property from others. morningstar mining seems to have updated their website about this case as well and chile government awarded them the tile.
yeah, they got out of hedges. geez. you are right. more shorts trying to push abx down. I tried buying at 28.90 and missed it. then 29.00 and missed it. watched it go to 29.45 and then I bought at 29.20 on the pullback. now it's near 29.00. shoot me.