Comments on: A Serious Bet on $1,350 Gold http://dailyreckoning.com/a-serious-bet-on-1350-gold/ Economic News, Markets Commentary, Gold, Oil and Investing Strategies. Fri, 25 May 2012 16:13:17 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Herach http://dailyreckoning.com/a-serious-bet-on-1350-gold/#comment-24405 Herach Fri, 11 Sep 2009 15:09:10 +0000 http://dailyreckoning.com/?p=18300#comment-24405 Question. If Barrick is so knowledgable re the price of gold, why did they hedge3 so much at the prices they selected? They used this as a means of atracting buyers of their stock. I was one. I got out when gold started going higher, shifting to Newmont and later Goldcorp. Barrick is betting heavily on gold prices increasing. Does any one trust their prognosticating abilities? Question. If Barrick is so knowledgable re the price of gold, why did they hedge3 so much at the prices they selected? They used this as a means of atracting buyers of their stock. I was one. I got out when gold started going higher, shifting to Newmont and later Goldcorp. Barrick is betting heavily on gold prices increasing. Does any one trust their prognosticating abilities?

]]> By: Brian Carpenter http://dailyreckoning.com/a-serious-bet-on-1350-gold/#comment-24394 Brian Carpenter Fri, 11 Sep 2009 13:55:27 +0000 http://dailyreckoning.com/?p=18300#comment-24394 I'm bullish on gold, but I don't know why I should trust Barrick's prognostications. They shut down a perfectly good mine here in western South Dakota at almost precisely the bottom of the gold price in the late 1990's because it wasn't profitable to run. They can't restart it because they'd have to correct all the previously grandfathered in violations of environmental regulations. It's going to be an underground science lab now instead. If the geniuses at Barrick could forsee the future, they never would have done that. I’m bullish on gold, but I don’t know why I should trust Barrick’s prognostications. They shut down a perfectly good mine here in western South Dakota at almost precisely the bottom of the gold price in the late 1990′s because it wasn’t profitable to run. They can’t restart it because they’d have to correct all the previously grandfathered in violations of environmental regulations. It’s going to be an underground science lab now instead. If the geniuses at Barrick could forsee the future, they never would have done that.

]]> By: tony bonn http://dailyreckoning.com/a-serious-bet-on-1350-gold/#comment-24279 tony bonn Fri, 11 Sep 2009 07:01:23 +0000 http://dailyreckoning.com/?p=18300#comment-24279 antal fekete essentially answers this question in an article 9/10 - to wit: the consequences for barrick will be huge...he thinks that they may be carved and divied up for stronger hands... barrick's management was completely incompetent morons...i keep asking why higher education is a requirement for business jobs when i see such gross stupidity here and all over the financial and government sectors....these expensive educations are utterly useless on low iq minds and those without critical thinking capacities....and no, i am not playing monday morning quarterback....fekete specifically warned barrick in person 12 years ago against their strategy of forward selling which it stupidly called hedging... antal fekete essentially answers this question in an article 9/10 – to wit: the consequences for barrick will be huge…he thinks that they may be carved and divied up for stronger hands…

barrick’s management was completely incompetent morons…i keep asking why higher education is a requirement for business jobs when i see such gross stupidity here and all over the financial and government sectors….these expensive educations are utterly useless on low iq minds and those without critical thinking capacities….and no, i am not playing monday morning quarterback….fekete specifically warned barrick in person 12 years ago against their strategy of forward selling which it stupidly called hedging…

]]> By: tony bonn http://dailyreckoning.com/a-serious-bet-on-1350-gold/#comment-24129 tony bonn Thu, 10 Sep 2009 20:31:25 +0000 http://dailyreckoning.com/?p=18300#comment-24129 i would be interested in knowing what penalties barrick owes to its counter parties for defaulting on the hedges...maybe their contracts allowed them to unwind in this fashion but even so it will make future customers think thrice about doing business with them... and what is the ripple effect?....did jpm buy from barrick for delivery to some other client? maybe it's less complicated than i think... i would be interested in knowing what penalties barrick owes to its counter parties for defaulting on the hedges…maybe their contracts allowed them to unwind in this fashion but even so it will make future customers think thrice about doing business with them…

and what is the ripple effect?….did jpm buy from barrick for delivery to some other client? maybe it’s less complicated than i think…

]]>