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

To: Canuck Dave who wrote (6874)	5/17/2004 2:37:47 PM
From: goldsheet	Read Replies (1) \| Respond to of 8010

Just reporting the story. Thinking is optional for me, and requires more energy than I have available today ;)

To: Canuck Dave who wrote (6874)	5/24/2004 9:50:32 PM
From: russet	Respond to of 8010

If someone wanted a tonne of most things delivered to their specified address, it would take differing amounts of time to deliver it to them. If that person was willing to pay double the market cost for that silver, my bet is it would take much less time for an aggregator to find and deliver it, but it would be foolish for the buyer to do so when they could wait a month or three for it and get it at the going price. Why do you think that you should be able to get any quantity of silver delivered to you overnight,...or even in a month. The stuff isn't in aisle 5 at every Wal*Mart :-) Why shouldn't the commercials normally always be net short,...I think it might be unlikely for them not to be. Most non-producer commercials are manufacturers or distributors of one sort or another and once they get a contract they will want to lock in some supply price to make a profit,..they will probably be net neutral with equal numbers of long and short contracts to hedge the price. Most producers however will probably be net short, because they only want to guarantee a delivery price so they can make a profit, and they are willing to give up short term speculative upside to lock in a price that can't drop. This is hardly a naked short as the miner has the stuff in the ground. Most producers of metals don't think about speculating on metal prices,...and most speculators don't think like producers. Smart producers spend most of their time trying to increase efficiencies of their mining, looking for new stuff to mine, dealing with labor and government officials, and looking for other ways to keep costs low. These are the concerns of producers of commodities. Speculators spend their time dreaming of great wealth they are going to make in their positions, and when it doesn't happen they try and blame someone else for their stupid gambles,...and I resemble that person sometimes (ggggggggggg)