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Barrick Folds - The Big News on Gold

Tuesday, September 8, 2009, 8:36 PM
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Today, after the gold markets closed down, came the biggest news about gold that I have heard in many years.

To understand why, you need to be aware that for years, Barrick had been selling gold promises into the market at far lower prices, serving to hold down the price of gold.  The promises were simple, forward hedges that gave Barrick cash today for gold to be delivered in the future.

Over time, Barrick repeated this trick enough times that it had forward-sold more than an entire year's worth of production.

 

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