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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.29+0.6%Nov 7 4:00 PM EST
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To: Follies who wrote (156900)4/21/2020 9:20:53 PM
From: Maurice Winn1 Recommendation

Recommended By
Joseph Silent

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It's certainly a lot of fun to see that future contracts can see people stuck with a bad deal*. Unfortunately I was caught via a shareholding in Z Energy Ltd in NZ. They own a retail fuel network. They agree to buy ships full of fuel a month or three in advance of delivery.

When NZ was suddenly banned from driving, demand went to zero. The supply chain banked up and at least one but maybe 2 or more ships of fuel had to be sold for what the market would bear which I guess was very cheap. Very very cheap though probably not negative.

Gold is a bit different because people can just stack gold in their back yard. Oil can't just be tipped out in the ocean or backyard.

The oil price will on average remain above zero and probably over $15 per barrel.

Gold price will fall to about $1000 when WuFlu fizzles and US$ dilution is only about 10%.

Mqurice

*...It is not fun finding that my dopey managers did a bad job of planning supply. I now realize they might even think they are clever and got into futures trading instead of the retailing business. It is too common that companies get into money-magic instead of their actual temporal job of making and selling things which "clever" people think is beneath them.
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