Gold Price Monitor Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold Price Monitor

GDXJ 97.67

+5.0%

Nov 10 4:00 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ken Benes who wrote (55241)	6/27/2000 11:03:00 AM
From: Alex	Read Replies (3) of 116753

Ken. As I've said in the past, I agree with you that producer hedging is helping to kill the gold sector. Every forward sale of an ounce of gold leads to that ounce being sold after it's borrowed from a cb. This, of course, makes little or no sense for either the producer or the cb. What good does it do a producer to sell an ounce forward at $290 that will cost him closer to $400 to replace? Surely its' intrinsic value has to at least be it's replacement value? And what good does it do a cb to lend this ounce out, in the name of return, when it loses five dollars in capital for every one dollar in interest it earns? But there you have it. Alice in Wonderland.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next