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 Price Monitor -- Ignore unavailable to you. Want to Upgrade?

To: Real Man who wrote (90587)	10/15/2002 7:38:27 PM
From: IngotWeTrust	Respond to of 116811

Vi, may I suggest you consider the following: Producers do NOT hedge their forwards by offsetting with long forwards. It simply isn't done, and for several reason you might consider. To satisfy lender requirements by entering into any of the 3 types of "forward" contracts mentioned in the earlier reply, there is NO simultaneous Long and Short futures positions by definition of "hedge." Option combos, perhaps, but simultaneous Longs and Shorts for a specific producer is NOT a hedge. It is a spread, and spread positions are not hedge positions.