SI
SI
discoversearch

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.
Strategies & Market Trends : Heinz Blasnik- Views You Can Use
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: zonder who wrote (1941)5/27/2003 10:37:37 AM
From: GraceZ  Read Replies (1) of 4912
 
but I know that most commodity producers sell forward their production for the year

There's been some forward selling to say the least. There were huge structural short positions and hedges in gold for years and years that required price and time to unwind. Gold has appreciated against all currencies over the last two years. Plus, we got some speculative rise out of every crisis in the last few years. When I was saying it was mostly dollar related, I was referring to the latest rise off the lows. What has the POG done in the last two months against the Euro?

I follow mostly unhedged miners and it bothers me that they are still sitting below levels they hit last year. They dropped precipitously after peaking last year and have come off that low quite a bit but they are still sitting below the highs of last year which means if you traded in and out of them you did OK but if you held you have basically gone no where in a year. If the POG breaks through the previous high and the miners fail to follow I'd see that as an ominous sign that investment demand is still limited to the hardcore goldbugs and the recent rise is speculative.

Someone showed me a long term chart of gold and silver production last night and it was bizarrely inverse to the price of gold. In other words when the price was low production was way up and as price rose off those 20 year lows production is falling. This tells me they can't ramp up in a higher price environment. You have to think that maybe their costs are rising along with the price of gold.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News