Replies to post #171 on PHLX Gold/Silver Sector (XAU)

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To:Bobby Yellin who wrote (112)
From: MICHEL GUIBERT Thursday, Jul 3, 1997 6:11 PM
Respond to of 79916

Hello
What is the price of gold now, the question look stupid, but many companies practice hedging (I think it's the right word), that
means they sale their future production by contract, a few month ago Richmont sign a contract and will sale around 100 000 oz for
45 000 000 US in the next 36 months, as I know most mines does the same, I don't think the buyers of contract are kids who just
finish school but believe they are advertised businessman who want to make money and believe in some future raise of POG.
I will appreciate some explanation on that phenomen in our actual market
Thank's
MG