Antal Fekete: Peak gold -- a primer on true hedging, Part II


10:25p ET Monday, September 10, 2007

Dear Friend of GATA and Gold:

Hard-money economist Antal Fekete has completed the second installment of his series "Peak Gold: A Primer on True Hedging," and explains in detail why it doesn't make sense for a mining company to hedge more than a year's worth of its own production. It's all perfectly persuasive -- unless a mining company is able to borrow gold that, for practical purposes, never has to be repaid.

Fekete doesn't yet quite believe that those indeed were pretty much the terms of Barrick Gold's borrowing so much gold from central banks for so long. But only such terms would seem to explain Barrick's doing what otherwise, as Fekete shows so well, would put a company in terrible jeopardy.

You can find the new installment of Fekete's "Peak Gold" series at GoldSeek here:

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

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