http://www.bloomberg.com/apps/news?pid=20601087&sid=a_Rt2xgQeWvY
Why is this bullish?
Barrick hedged (went short) millions of ounces of gold that has cost them billions of dollars as the price has risen 8 straight years. They had agreements with the bullion banks that they would never have to cover their short, just roll them over year to year. This had the effect of suppressing the gold price although as one can see over the years, it just slowed down gold's movement higher.
If Barrick thought $1,000 was a top, they would have no reason to cover their short (hedge) as a declining price would help their financial situation. No, Barrick thinks the gold run is just beginning and wants to get out of their short position NOW even though it is costing them billions. Maybe they believe the Chinese when they say they are buying gold and will continue to do so to diversify away from the USD.
I had to laugh at all of the top callers in gold today. They are a joke and are laughed at by those who understand the real gold story.
Speaking of stories, we should finally get back to discussing Oro Gold drill results tomorrow.
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