http://finance.yahoo.com/news/Barri...7.html?x=0&sec=topStories&pos=1&asset=&ccode=
Looks like they are pretty sure gold is going to skyrocket from here.
Looks like they are pretty sure gold is going to skyrocket from here.
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Barrick to eliminate gold hedges
- Thread starter peilthetraveler
- Start date
last i checked the open interest short position out there was several fold how much gold actually exists. i don't think they were the last bear by any measure
Quote from dumb_mother:
last i checked the open interest short position out there was several fold how much gold actually exists. i don't think they were the last bear by any measure
You have to know a bit about the gold market to understand what I said.
Back in the late nineties, Barrick had a deliberate strategy of putting on hedges to drive down the gold price. They did this in order to bankrupt their competitors. They were widely despised in the gold bug community as a result.
This announcement means they're finally throwing in the towel. A lot of the rise in the gold market is due to gold companies buying in their hedges. Barrick was pretty much the last holdout.
This is decidedly NOT a good sign. I've been trading gold for probably longer than most people here have been alive. I can recite gold bug arguments in my sleep. They've never been right, and they never will be, because they don't understand modern economies.
Anti-gold bugs, OTOH, don't understand the cultural hold gold has.
So, me, I just trade the one against the other. This is an extremely volatile market, and if you play it with an ideological mindset, you WILL get burned.
Fair warning.
Quote from jprad:
The only thing at the top of the golden staircase is an elevator.
There's a lady who's sure
All that glitters is gold
And she's buying a stairway to heaven
When she gets there she knows
If the stores are all closed
With a word she can get what she came for ...
Your head is humming and it won't go
In case you don't know
The piper's calling you to join him
Dear lady, can you hear the wind blow?
And did you know
Your stairway lies on the whispering wind?
And as we wind on down the road
Our shadows taller than our soul
There walks a lady we all know
Who shines white light and wants to show
How everything still turns to gold
And if you listen very hard
The truth will come to you at last
When all are one and one is all
To be a rock and not to roll
And she's buying a stairway
To heaven...
An accurate description of the plight of the average gold bug.
They never learn.