11a ET Wednesday, March 7, 2001

Dear Friend of GATA and Gold:

It's vital to hear what the other side has to
say and always to be testing one's beliefs, so
take a look at Clif Droke's latest essay at
www.Gold-Eagle.com: [1]

a href=http://www.gold-eagle.com/gold_digest_01/droke030801.htmlhttp://www.gold... [2]

Droke seems to be arguing that all gold mining
companies will do well if the gold price rises,
no matter how hedged they are. He makes this
argument specifically in regard to AngloGold.
He may be right about AngloGold, but it's hard
to see how his generalization stands up. It
would be interesting to hear his explanation
of Ashanti and Cambior, two miners that were
RUINED by a sharp rise in the gold price,
because they had hedged too much.

CHRIS POWELL, Secretary/Treasurer