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To: Zardoz who wrote (69839)5/21/2001 7:46:30 AM
From: Lucretius  Respond to of 116764
 
you shorting this gold rally yet? i mean... in your mind at least -vbg-



To: Zardoz who wrote (69839)5/21/2001 7:58:11 AM
From: long-gone  Read Replies (1) | Respond to of 116764
 
<<The HUI is not any better then the XAU index since the hedgers can sell into any rally and thus mitigate the rise in the POGand hence the HUI. >>

Not really true, if one want's to look at the true direction gold / silver producers only, though you are correct that any could hedge to a greater extent an any moment. Some of those on the HUI have spoken against "excessive hedging", but God only knows what that means & much the same comments have been made by some on both XAU & HUI. There are far less other non ferrous metals represented on the HUI.



To: Zardoz who wrote (69839)5/21/2001 8:35:56 AM
From: russwinter  Read Replies (1) | Respond to of 116764
 
<hedgers can sell into any rally >

Very unlikely hedgers will sell much into this given that contangoes are still a mere 1 3/4%. The pressure continues to be on them to buy or close out due to the delta equation. Hutch, you obviously haven't done much (any?)homework on black box theory?