4 Billion $ for gold

Discussion in 'Metal Futures' started by scriabinop23, Sep 11, 2009.

  1. I know last time around Barrick capitulating on hedges was a death knell for gold.

    But let's look at the nearer term.. 4 billion dollars to buy back outright gold hedges is 40000 100oz contracts of GC at $1000/oz.

    That will be additional demand onto the market. I have a hard time believing anyone will want to take the other side of that trade in the -near- term (next yr).

    $1500-$2000/oz doesn't seem so ridiculous. After they are done buying, watch out though.