Naxos Resources (NAXOF) 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 : Naxos Resources (NAXOF)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: ShoppinTheNet who wrote (7333)	12/16/1997 6:39:00 AM
From: Henry Volquardsen	Read Replies (2) of 20681

S.K., You say Now if there were long term futures contracts out there available to speculate on, Say 15 year contracts, well then I bet you would have seen some movment on that contract with the fall of Bre-x. Not true. There is an o-t-c market in long dated gold deals. I have traded in the 10 to 20 year sector professionally, frequently. The derivation of a price for such long dated deals is completely unaffected by long term supply and demand factors. It is a completely technical exercise. there are only three factors that affect the price; the price of spot gold, long term US interst rates and long term gold lease rates. Any move by the price outside of this derived zone would be quickly arbitraged out by guys like me. This is no different than the currency markets. There use to be an active academic debate about forward prices as a predictor of future prices. The debate has been settled. Forward prices are a function of interest rates not supply and demand.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next