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I am still against Barrick as technically they are a hedge fund not a gold miner! If they could unwind their derivatives and get back into gold mining they would make a *heap* of money. Goldi has ended up supporting the precious metals now (also in his column) instead of being a bearish protaginist.

What must be borne in mind though is that should anyone have borrowed gold at 3% in the last three months (Barrick - Newmont) now has a 43% gold loan on their hands.

The price of gold has rallied 10% on the average overnight close over this period and is therefore average for those loans. That is 10% in 3 months.

Annualized - that is 40% per year. If a gold loan is to be unwound, i.e. what he borrower will have effectively paid if he buys his gold back today. Add the 3% gold lease rate and it is a 43% loan.

I can see certain funds and miners, that are short, attempting to short the market even more to reduce the current price so that the effect will not hurt them as much.

Tudor Mutual Fund was the big buyer in the past week (Dec contracts at $265) so expect some profit taking from them in the ensuing month.

I have heard comments from Lalor (Sons of Gwalia) who does not appear to concerned although he has hedged *big time*.

We will see what transpires today on the markets...

I actually put HFY up for sale last thursday, as I had heard rumours re the quarterly results. These were snapped up Monday morning and I had to get back in to the least performing (share price rise) producer to ensure that I was long, at minimal cost. The result was a boost as Resolute also climbed.

I can see that certain people on this board will be shaking their heads in disbelief over the fact that they did not buy into resource stocks as a hedge. They should bear in mind that it is still a gamble.

Normandy should do well ... tell *De' Creepknee* to in future keep his appointments in Canada! It helps if he is upfront and honest!
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