Silicon Investor (SI) -- The First Internet Community

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.

Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Crimson Ghost who wrote (52082)	5/25/2000 3:28:00 PM
From: pater tenebrarum	Read Replies (2) \| Respond to of 99985

George, he's 100% right. it's not economical to hedge at current prices, due to the much higher replacement costs. luckily some of the producers have seen the light and curtailed the practice. thanks for the link... regards, hb

To: Crimson Ghost who wrote (52082)	5/25/2000 3:48:00 PM
From: Fun-da-Mental#1	Respond to of 99985

Re The Folly of Hedging, I don't get the argument there. So far hedging has enabled the gold miners to sell above the market price, so how is that driving prices down? If they sold at the market instead, yes maybe gold prices would go higher, but only after enough miners had gone out of business to restrict the supply. If the market price is below the miners' replacement cost, I assume that's due to competition from central bank selling. I think the miners are hedging in order to survive until the bank selling is over. Fun-da-Mental