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Gold/Mining/Energy : Gold Price Monitor
GDXJ 101.44+3.5%Nov 12 4:00 PM EST
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To: long-gone who wrote (9086)3/31/1998 9:14:00 AM
From: James F. Hopkins  Read Replies (2) of 116756
 
Has ; Anyone totaled up the put options on Gold, like some mining
companies hedge their output with put options to sell forward at
a certain point. Not trying to hype one it was the hedge position
that PCU had in copper that caused me to buy her back when she was
12.75-13.50..but what I'm driving at is if the miners have a lot
of hedge positions, then the middle man ( buyer ) has an insentive
to get the price up. Who sold all the puts some time back , likley
people that deal in gold and figured with what they got , for
the put, and at x strike price it was a good deal at the time,
any way I don't know where to get the total put/call options
on gold. Or even copper..just that some miners publish their
position such as PCU did ..and I feel if enough of them are out
there is one more reason to put upward pressure , or at least
a floor on the price.
I know of one gold miner that has about their entire years
production locked in at $345..seems they paid for the puts mostly
by selling calls up around the $420 range..now they do not need
to put it out at $345, if the price goes above that,
and I'm sure if it were to go to $420 they could and would jack
up production to meet the calls..
Back to question , what does the total option positions
taken out last year seem to say about the future of gold ?
How many miners are hedged ?
Jim
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