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Gold/Mining/Energy : Gold Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (87852)	7/15/2002 2:53:59 PM
From: IngotWeTrust	Read Replies (1) \| Respond to of 116764

Yes, commercials can be record short at multi-year lows, due to placing futures contract HEDGES which are substitute sales related to their sales commitments (and incidentally prior to receipt from their sources) just as commercials can be record long at multi-year highs prior to receiving purchase commitments from their customary customers. Platinum. Gold. Silver. Palladium. Rhodium. Tantalum. Iridium. Makes no difference. Just the exchange is different, not the contract mechanism of hedging by commercials. Do you truly understand the usage of futures markets, spreads and hedging by commercials, who are active in physical markets? Why do you wonder about nameless commercials enumerated in an anonymous survey? They are no different than the Bank of England who were heavily short gold futures prior to the sales of their actual tranches of bullion. It is only historical perspective that assigns "multi-year highs" and "multi-year lows" qualifiers to price action. There was a time when the term multi-year lows labeling was attached to the gold market...at the $332 PoG level. Turns out that was a wrongly applied label...in historical perspective. Your turn again<grin> g_t