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.

Gold/Mining/Energy : Gold and Silver Mining Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Zardoz who wrote (316)	6/7/2000 8:22:00 PM
From: russwinter	Read Replies (1) \| Respond to of 4051

So you're saying that the forward (or spot deferred contract)is a permanent without close out provisions, or that has penalty provisions (perhaps similar to early payoff of a commercial loan)? If so, any idea how much? If your point is true, than these companies are in worse shape than even I suspected. What happens if there is a major production falloff? How about a force majeure? Or even something as basic as a new price for the product? What a crazy way to conduct business in an industry as uncertain as mining. Why couldn't you buy a standard future back? You sell (short) and pick your cover price (go long). If the price is lower you profit. I don't understand your point?