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  • Barrick's (ABX) CEO Jamie Sokalsky on Q2 2014 Results - Earnings Call Transcript [View article]
    Followup to Doug Eberhardt. I and most people who follow demand side economics follow trend lines based on actual data. Meaning the range of future values have probabilities attached to them. I have given you the highest probability scenarios for the near future.
    Aug 2, 2014. 08:38 PM | Likes Like |Link to Comment
  • Barrick's (ABX) CEO Jamie Sokalsky on Q2 2014 Results - Earnings Call Transcript [View article]
    To Doug Eberhardt. So I looked at your 8 indicators. I call them distractions.

    I recommend learning or relearning demand side economics. It is where you get an inkling of the future. The key gold demand side indicators are:
    consumer gold demand in China and India will likely stay level and may grow some, the biggest gold consumer markets on the planet. Sovereign banks, particularly China, will continue to buy gold on the sly to minimize price increases; and as the safest bet against both inflation and currency devaluation; which are usually tied together.

    Currency games by both sovereign banks and markets will continue to push people and institutions into more gold and precious metals buying.

    Or, it is still a moderately bullish gold market. Though, sovereign banks still hold the edge on keeping gold prices level or moving up only slowly to protect their currencies.

    This latest down turn in the gold markets has only forced the gold companies to re evaluate nearly everything for greater efficiencies.
    Which means to most people, gold earnings trends should be up, even
    though money has been lost nearly across the board this year by
    gold companies.

    There is no other investment sector with a greater potential for increased
    earnings than gold and precious metals; with the exception of a few niche
    specialty markets where only the traders have the capacity to capitalize on
    quick ins and outs; buying at low prices and selling at high intraday prices.

    All the American stock markets are at or near historical highs. Foreigners look at American stock markets and go the other way. If this does not tell you something, there is nothing else I can say to you.

    All the best.
    Aug 1, 2014. 07:54 PM | Likes Like |Link to Comment
  • Update: Barrick Gold's Earnings-The Losses Continue [View article]
    Rather than saying you would rather look for other opportunities in this space.
    How about trying to be productive and actually tell people what you think is a better buy based on measurable performance values, company by company? I think if you look close at all of the gold and precious metals companies, you will find Barrick/ABX the least undesirable of the lot. Or based on all the long term fundamentals, Barrick is the best buy of the lot, if you are a long term investor.

    It is obvious to most people, the market has been beating up on traders lately.
    Real long term investing is usually much smarter than trading, particularly day
    Aug 1, 2014. 07:34 PM | Likes Like |Link to Comment
  • Barrick Is A Levered Play On Gold [View article]
    Index funds closely follow the ups and downs of the market. Individual stocks usually do not. If you like roller coaster price rides, buy all the index funds you
    can. If you actually are interested in well thought out and well researched,
    well run companies, you are better off buying individual stocks.
    Aug 1, 2014. 07:27 PM | Likes Like |Link to Comment
  • Barrick Offers Investors A Golden Opportunity [View article]
    To techy46. Debt is leverage in business. Meaning, as long as the debt can be covered and capital investment comes to production, real leverage occurs. Or the multiple or gains on the debt can be anywhere from 5% to 500%.

    So for a large business, the large utilities are the classic examples, as long as one plans well with contingencies for every possibility, profit maximization comes from maximizing debt within the capabilities of the company.

    So your ABX too much debt notion is just wrong from a capital and profit maximization point of view.

    Your trading scenario sounds promising. The problem with trading, all the other traders know your scenario and will think of another scenario moving the market in a way you have not thought of leaving you in the cold, or
    with capital losses. Which may not matter to you. Most people do not
    want to spend every spare minute they have keeping track of markets to minimize capital losses. Good luck or good grace in any case.

    And thanks for sharing your operating scenario. Very few people will do that knowing others are likely to scoop or subvert their plans. I assume you have iterations for changes ready based on any market change you can think of.
    Jul 6, 2014. 02:01 PM | 1 Like Like |Link to Comment
  • Barrick Offers Investors A Golden Opportunity [View article]
    To TJI. Both the Chinese and Indian economies have been up and down
    over the last two years. And gold demand has followed those economy ups
    and downs.

    Gold prices have declined from the speculative run up to $1700 per ounce.

    What we have since the last gold speculative run up is closer to a normal average gold market. Though as you know, we almost never see an average. And only only know what the average is after the fact.

    Sovereign banks have been buying gold to shore up their currencies, or try to prevent runaway gold and precious metals markets which inflate currencies greatly reducing confidence in currency; causing general
    economic instability.

    Sovereign banks will never be able to buy enough gold. Specifically, Sovereign banks would have to be able to buy enough gold to enforce a gold price. Based on my readings, is not possible.

    Or Sovereign banks, China in particular, are providing a floor on gold prices buying as much as they can, where ever they can get the best price on the sly to avoid gold market price increases.

    So any externalities, increases in consumer buying mostly, will now push the price of gold up. Or any consumer scare will likely increase gold buying by consumers.

    There are other factors of course, which are not front and center at the moment, but could be on short notice; such as supply disruptions.

    So the gold price momentum is in the upward direction. Though the
    Sovereign banks are doing everything they can to keep gold prices stable
    to protect their currencies.
    Jun 25, 2014. 10:45 AM | 1 Like Like |Link to Comment
  • Barrick Offers Investors A Golden Opportunity [View article]
    The analysis ignores the macro world gold market, China and India in
    particular; which makes the analysis erroneous. Gold prices will
    have a continual upward pressure from these locations. So the
    projected downward predicted future price is probably

    And I am more than satisfied to wait and see who is correct.

    Currency markets have been so volatile and so bizzare; gold is
    the only practical alternative. And nearly every informed
    person knows it.

    No one I know has an interest in putting up with the crap
    currency markets. Everyone I know is also more than satisfied
    to tell the currency traders where to go. Or more specifically,
    the currency traders need to go get a life and any productive
    endeavor to do would be preferable to the currency market

    How many millions do you think would verbalize the above,
    if given the opportunity?

    And no, I have not had any currency bad trades.

    The big picture matters more than anything. Or removing
    blind spots from your thinking is critical; especially grand
    canyon size bind spots like ignoring world gold macro economics,
    in China and India in particular, is particularly outrageous
    and ridiculous.
    Jun 24, 2014. 01:15 PM | 4 Likes Like |Link to Comment
  • Despite Challenging Conditions, Investors Buying Anglo American's Self-Improvement Potential [View article]
    To Charilezap. 1. Seems to me all of the Enron fraudster ended up in jail.
    The warning to the rest that there are real consequences for fraud. If you do
    not think this is a real deterrent to more fraud, you have not been paying attention.

    I have not read of any Brits going to jail for fraud. If you know of any, please point them out. Or what appears to a be fundamental difference between the U.S. and G.B., in the U.S., fraudsters are always looking over their shoulders and making sure they are following the rules, for plausible deniability at the least. Since you appear to operated with such confidence, can you tell me if this kind of at least superficial rules following happens outside the U.S., G.B. in particular?

    2. It is very much worth the time for anyone investing overseas, outside the U.S., to research the issue and/or stock, especially if they are not buying ADRs. The only people the accountants actually listen to are the lawyers. Thinking you can rely on accountants or accountants first without legal back up, is sheer folly as an investment strategy.

    Your blind spots are bigger than mine. All the best in any case.
    May 11, 2014. 07:11 PM | Likes Like |Link to Comment
  • Despite Challenging Conditions, Investors Buying Anglo American's Self-Improvement Potential [View article]
    To charliezap. Thanks. I own ADRs, have read up on them, why I was able to comment here. I presume your comment is for the blog. Enron, Health South, Worldcom, AIG, are proof the American system works, at least part of the time for the average investor. Can you or anyone else cite the same kind of cases that have showed up in British Courts? You know they probably exists. Put have they ever been prosecuted? Or does the British investment system just steal from average investors because they can; more so than the American system.
    May 9, 2014. 06:39 AM | 2 Likes Like |Link to Comment
  • Barrick’s pursuit of Newmont suggests it’s "lost its mojo," analyst says [View news story]
    To 6151621. Show me or tell me where risk is put together on the balance sheet. It is not. Since practically all contracts have a firm price, there would be no need for a debt covenant on a contract, where the hedging would be done. If Barrick has signed sales contracts that do not have a fixed price (I can not imagine why they would do that), please point it out in the Annual Report. This would be highly out of the ordinary requiring some annual report reporting on it. Please point it. I have never seen it and do not believe it exists.

    If you are telling me Barrick pledged their sales contracts to cover short term debts and the debt contract requires a hedge against something, I would say that debt contract is illegal coercing the debt buyer into something they do not need.

    So it appears the truth has come out, thanks, how wall street managed to trick Barrick into hedging. Adding some unrelated and mindless contract
    stipulation requiring hedging for the wrong reasons.

    You have probably noticed, Barrick has not hedged lately. Or have just
    started to, and probably for the right reasons this time.

    So the only way what you have stated could happen is if someone at Barrick were hood winked; or did not fully read the contract. Possible,
    but not likely, and not main stream as you have suggested. Try again.

    Better yet. Lets just stop. I have no interest in being your instructor.
    May 7, 2014. 12:03 PM | 1 Like Like |Link to Comment
  • Despite Challenging Conditions, Investors Buying Anglo American's Self-Improvement Potential [View article]
    To hanskpauley. If you want protection of American Investment Laws, you must by Anglo American (American Depository Receipts ADRs). To buy over the counter, invites all kinds of trouble whenever the market is in a trouble condition; usually the time most people want to try to sell. I believe this is what the author meant in his Editors notes. Or, the average investor needs to be reminded when they are not buying an American Financial product, no matter how big that foreign company is.

    The rule of law matters, especially in times of trouble, and it appears Americans seem to know this at least as well, probably better than anyone else. And how many American investors are experts in British financial laws? I wonder if there are any.

    And my gut feeling is American financial laws are written better than British financial laws at protecting the average investor. If you have any contrary info, I would appreciate reading it.

    And in an American court, if you own an ADR, the laws of both sources would come into play, giving the investor an advantage of picking the law that most protects the average investors interest. So either way, it was prudent for the author to make his notes statement which would remind most investor why they buy ADRs.
    May 7, 2014. 11:26 AM | 1 Like Like |Link to Comment
  • Barrick’s pursuit of Newmont suggests it’s "lost its mojo," analyst says [View news story]
    To james. Full of crap again. Pascua Lama was table. Not abandoned.
    The Barrick balance sheet has been fixed, go check out. Barrick is not short of cash. They would have never become involve in talks with Newmont if there debt were not under control. Get a clue, which means check out the info at reliable sources before you put up BS here. Stop wasting people time.

    Newmont is just above pocket change for Barrick. The most likely scenario is in 2 to 5 years or longer, after Pascu Lama has come on line, Barrick will buy Newmont and just pick it apart. Newmont had their chance and it is gone.

    Barrick Chairman Munk said he would have preferred buying Newmont, but did not want to pay the expected premium at this time. With the recent Barrick debt challenge solved, getting into another one at this time by trying to buy Newmont was not in the picture at this point. Or, get another clue.
    May 7, 2014. 11:01 AM | Likes Like |Link to Comment
  • Barrick’s pursuit of Newmont suggests it’s "lost its mojo," analyst says [View news story]
    To 6151621. Still thinking like a small miner. Hedging is done to make up the difference in the gold price later on after the contract is signed when the price goes up. At least in accounting, which it sound like you should be well familiar, there is usually no direct connection between debt and hedging. They are on two different spots on the balance sheet. Hedging, being an insurance policy against lost price increases, usually has nothing to do with the bank; unless you mean investment bank or the people selling the hedging contract.

    If you use just the word bank, most people take that to mean a regular bank insured by the government, not an investment bank. Being investment banks, they have there own protection, Loyds of London and other re insurance programs. So there is no connection to equity investors.
    Your are reaching and wasting our time here.

    The large cap miners report when they meet their goals. An it is in their annual report for all to read. So it sound like you are telling me the mid cap miners are not as forthcoming as the large cap miners in their annual reports; another reason why to buy large cap miners stock.
    May 7, 2014. 10:43 AM | Likes Like |Link to Comment
  • Barrick Gold: This Stock Is A Buy [View article]
    To sbrncra. While possible, not likely. The sovereign banks are paying very close attention to the gold market, buying on lows, and selling on highs.
    Leaving a trading range as you have seen over the last year. This trading range may drift up as the sovereign banks, especially China, can not buy enough gold with all of the currency floating around and their absolute need to keep currency prices as stable as possible.

    With sovereign banks actively involved in gold markets, single negative world events have much less of a chance of changing the gold price as they have in the past.

    Or your thinking is old, not considering the current gold markets as describe here.
    May 7, 2014. 10:27 AM | Likes Like |Link to Comment
  • Barrick’s pursuit of Newmont suggests it’s "lost its mojo," analyst says [View news story]
    To 6151621. You would have to point out to me where Barrick or any large company has held back product. I have never seen it in a Barrick annual report.

    You are thinking like a small miner again. Small miners are forced to hold back product when the market price takes a dip. Not so with large miners.
    They rely mostly on long term contracts and then hedge against price increase or decreases, where they think they need to.

    Hedging by big business is big business everywhere; where the hedge funds make they money; buying up product price increase or decrease risk of large commodity sellers.
    May 5, 2014. 02:47 PM | Likes Like |Link to Comment