----- Original Message -----
From: Gold Anti-Trust Action Committee
To: [EMAIL PROTECTED]
Sent: Monday, May 21, 2007 6:26 AM
Subject: [GATA] Gold Fields CEO says miners now realize hedging was stupid
Gold Fields CEO says miners now realize hedging was stupid
Submitted by cpowell on 04:26AM ET Monday, May 21, 2007. Section: Daily
Dispatches
>From Reuters
Monday, May 21, 2007
http://africa.reuters.com/business/news/usnBAN123005.html
SYDNEY, Australia -- A failure to find the next mother lode was helping prop up
gold bullion prices, the head of South Africa's Gold Fields Ltd., the world's
fourth-largest gold miner, said on Monday.
"There is a lack of exploration expenditure and a lack of discovery of any
significant size," the company's chief executive, Ian Cockerill told a
conference in the Australian city of Perth.
"The world is consuming 85 million ounces of gold a year but the industry is by
no means finding and replacing that amount," he said.
Cockerill said the gold sector was firmly entrenched in a bull market and
predicted there was still some way to go.
"Gold has in the past decade become the barometer of the geo-political state of
the globe," he said.
"With the increasing hostilities over the last 10 years, we have seen sentiment
come under gold from the prices of around US$200 an ounce in about November
2000 to the current range of US$600-700 an ounce," Cockerill said.
Spot gold sold for a record $850 in 1980 and traded as high as $730 an ounce in
May 2006. The price has since recoiled though it remains well above long term
averages. At 0353 GMT, an ounce of gold cost $662.25.
Cockerill said the "stupidity" of miners hedging future production had fallen
by the wayside in favour of direct exposure to spot market prices.
"Most analysts now recognise hedging was a fault -- it is like eating your
young -- we have come to recognise the craziness of selling something at a
price delivery point in the future which is at a price that guarantees that you
cannot replace it.
Gold Fields, which earlier this month posted third quarter gold production of
989,000 ounces, has long been critical of hedging gold.
Hedging has divided the world's mining companies, with rivals such as Newmont
Mining Corp. and Rio Tinto Ltd./Plc. also refusing to hedge.
Start-up mining companies are sometimes forced by lenders to hedge at least
part of their projected gold yield to cover loans.
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Recommended Sites
Recommended Internet sites for daily monitoring of gold and precious metals
news and analysis.
Free sites:
http://www.jsmineset.com
http://www.cbs.marketwatch.com
http://www.mineweb.com/
http://www.gold-eagle.com/
http://www.kitco.com/
http://www.usagold.com/
http://www.usagold.com/amk/usagoldmarketupdate.html
http://www.GoldSeek.com/
http://www.GoldReview.com/
http://www.capitalupdates.com/
http://www.DailyReckoning.com
http://www.goldenbar.com/
http://www.silver-investor.com
http://www.thebulliondesk.com/
http://www.sharelynx.com/
http://www.mininglife.com/
http://www.financialsense.com
http://www.goldensextant.com
http://www.goldismoney.info/index.html
http://www.howestreet.com
http://www.depression2.tv
http://www.moneyfiles.org/
http://www.howestreet.com
http://www.minersmanual.com/minernews.html
http://www.a1-guide-to-gold-investments.com/euro-vs-dollar.html
http://www.goldcolony.com
http://www.miningstocks.com
http://www.mineralstox.com
http://www.freemarketnews.com
http://www.321gold.com
http://www.SilverSeek.com
http://www.investmentrarities.com
http://www.kereport.com
(Korelin Business Report -- audio)
http://www.plata.com.mx/plata/home.htm
(In Spanish)
http://www.plata.com.mx/plata/plata/english.htm
(In English)
http://www.resourceinvestor.com
http://www.miningmx.com
http://www.prudentbear.com
http://www.dollarcollapse.com
http://www.kitcocasey.com
http://000999.forumactif.com/
http://www.golddrivers.com/
http://www.goldpennystocks.com/
http://www.oroyfinanzas.com/
Subscription sites:
http://www.lemetropolecafe.com/
http://www.goldinsider.com/
http://www.hsletter.com
http://www.interventionalanalysis.com
http://www.investmentindicators.com/
http://www.caseyresearch.com/
Eagle Ranch discussion site:
http://os2eagle.net/SSL/phpentry.php
Ted Butler silver commentary archive:
http://www.investmentrarities.com/
Recommended Gold & Bullion Dealers
Coin and precious metals dealers who have supported GATA
and been recommended by our members:
Blanchard & Co. Inc.
909 Poydras St., Suite 1900
New Orleans, Louisiana 70112
888-413-4653
http://www.blanchardonline.com
Centennial Precious Metals
Box 460009
Denver, Colorado 80246-0009
1-800-869-5115
http://www.USAGOLD.com
Michael Kosares, Proprietor
[EMAIL PROTECTED]
Colorado Gold
222 South 5th St.
Montrose, Colorado 81401
http://www.ColoradoGold.com
Don Stott, Proprietor
1-888-786-8822
[EMAIL PROTECTED]
El Dorado Discount Gold
Box 11296
Glendale, Arizona 85316
http://www.eldoradogold.net
Harvey Gordin, President
Office: 623-434-3322
Mobile: 602-228-8203
[EMAIL PROTECTED]
Gold & Silver Investments Ltd.
63 Fitzwilliam Square
Dublin 2, Ireland
...and
Tower 42, Level 7
25 Old Broad St.
London, EC2N 1HN
United Kingdom
Local Call Ireland: 1-850-GOLD-IE
UK phone: +44 (0) 207-060-4653
International: +353 1-632-5010
Fax: +353-1-6619664
www.gold.ie
Investment Rarities Inc.
7850 Metro Parkway
Minneapolis, Minnesota 55425
http://www.gloomdoom.com
Greg Westgaard, Sales Manager
1-800-328-1860, Ext. 8889
[EMAIL PROTECTED]
Kitco
178 West Service Road
Champlain, N.Y. 12919
Toll Free:1-877-775-4826
Fax: 518-298-3457
...and
620 Cathcart, Suite 900
Montreal, Quebec H3B 1M1
Canada
Toll-free:1-800-363-7053
Fax: 514-875-6484
http://www.kitco.com
Lee Certified Coins
P.O. Box 1045
454 Daniel Webster Highway
Merrimack, New Hampshire 03054
http://www.certifiedcoins.com
Ed Lee, Proprietor
1-800-835-6000
[EMAIL PROTECTED]
Lone Star Silver Exchange
Suite 635, 3521 Oak Lawn Ave.
Dallas, Texas 75219
214-632-8869
http://www.discountsilverclub.com
MRCS Canada
12303-118 Ave. NW
Edmonton, Alberta T5L 2K2
Canada
http://www.mrcscanada.com
Michael Riedel, Proprietor
1-877-TRY-MRCS
1-877-879-6727
[EMAIL PROTECTED]
Miles Franklin Ltd.
1001 Twelve Oaks Center Drive
Suite 1028
Wayzata, MN 55391
1-800-822-8080
http://www.milesfranklin.com
Contacts: David Schectman,
Andy Schectman, and Bob Sichel
Missouri Coin Co.
11742 Manchester Road
St. Louis, MO 63131-4614
[EMAIL PROTECTED]
314-965-9797
1-800-280-9797
http://www.mocoin.com
Resource Consultants Inc.
6139 South Rural Road
Suite 103
Tempe, Arizona 85283-2929
Pat Gorman, Proprietor
1-800-494-4149, 480-820-5877
[EMAIL PROTECTED]
http://www.buysilvernow.com
Swiss America Trading Corp.
15018 North Tatum Blvd.
Phoenix, Arizona 85032
http://www.swissamerica.com
Dr. Fred I. Goldstein, Senior Broker
1-800-BUY-COIN
[EMAIL PROTECTED]
The Moneychanger
Box 178
Westpoint, Tennessee 38486
http://www.the-moneychanger.com
Franklin Sanders
1-888-218-9226, 931-766-6066
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