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


To: Ron Schier who wrote (13091)6/13/1998 5:13:00 PM
From: William JH  Read Replies (1) | Respond to of 116791
 
Help! Can someone explain how forward selling of gold by producers hurts the gold price?

It would seem to me that if a producer sold forward contracts at $400, then when gold moved lower bought them back at $350, no gold changed hands and the deal is closed. Why wouldn't all the forward sellers close out their positions here and take a paper profit?

What am I missing?