Metals have been hot
Bear
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14.49..........................682.90......................1231
There once was a place called
Camelot
Camelot
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<< 14.49..........................682.90......................1231 >>
......SILVER........................GOLD.....................PLATINUM ???
Stuart
Collect 18th & 19th Century US Type Coins, Silver Dollars, $20 Gold Double Eagles and World Crowns & Talers with High Eye Appeal
"Luck is what happens when Preparation meets Opportunity"
Lead is at an all time high.
Oh, that is Internal Revenue Code section 1231 (gains and losses).
Must be working too hard.
<< <i>1231?
Oh, that is Internal Revenue Code section 1231 (gains and losses).
Must be working too hard.
So is it going to be a gain or a loss, I need to know
Dont work so hard!
***Gold producers hedge less as prices near $700
Study shows producers, led by Barrick, unwound positions last year
---SAN FRANCISCO (Market W*tch) -- Confident that sub-$300 gold is a bogeyman of the past, miners of the precious metals are increasingly doing away with hedging contracts designed to insure against a drop in prices.
Producers reduced their hedging positions by 25% last year, the sharpest drop in at least five years, to 40.2 million ounces, said a study published Friday by Mitsui & Co., London consultancy Virtual Metals and Toronto-based consultant Haliburton Mineral Services.
Taken another way, dehedging totaled 13.4 million ounces, or more bullion than European central banks sold last year.
Miners have been shying away from using financial instruments like forward contracts, which act as agreements to sell gold at a certain price in the future, to manage their gold sales. These contracts protect them from a drop in prices -- but don't work so well if prices go up.
"While dehedging in 2007 is not expected to be of a similar magnitude to what it was in 2006, little appetite exists for new hedging," said Edel Tully, head of precious metals research at Mitsui's Mitsui Global Precious Metals, in a statement.
On Thursday, Barrick Gold Corp. (ABX : Barrick Gold Corporation
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ABX31.06, -0.40, -1.3%) (CA:ABX: news, chart, profile) said it had completely eliminated its corporate hedge book and planned to eliminate its remaining floating spot price contracts by the end of the second quarter. See full story.
Barrick, the world's largest gold producer, accounted for 70% of dehedging activity last year, the study said.
Gold futures surged to a fresh seven-month high on Friday, with prices on the April contract breaking through $690 an ounce on the New York Mercantile Exchange. See Metals Stocks.
Hedging activity hit a peak in the third quarter of 2001 and has declined about 60% since then as gold prices have risen, said the report. Still, the volume of gold hedged still represents about a six-month supply of the world's annual gold production.
Since arranging to sell gold in a futures contract adds to the supply of gold in the market, some critics of hedging have said that it artificially dampens gold prices.
Conversely, unwinding hedges shrinks supply and may support prices. London consultancy GFMS Ltd. said last month that Barrick's dehedging action "was thought to have been an important factor behind initial price strength last year."
Laura Mandaro is a reporter for MarketW*tch in San Francisco****
Come on $700 Gold......Hey Coinboy, remember what you said about Gold....sub $550????
What say you???
If it all pans out it is off to the races until May and then watch out!!
<< <i>The nickel price has me wondering...what's the value of those 22 lb. bags of foreign coins if you consider the metal prices? >>
If it's mostly newer coins then it can be as high as 15 or 20% nickel. The older
ones will be lower. Aluminum is at $1.30 / lb. and copper is also headed back
up again.
Let me know if you find a buyer, and at a fair price. An awful lot of this stuff will
be destroyed in small scale processes, apparently.
As for me, I am in the cheer mode for now!!!
Tyler
<< <i>I was wondering, do gold bugs ever sell their precious gold, or do they just cheer when prices rise?
As for me, I am in the cheer mode for now!!!
Tyler >>
Only if their plastic interest rates exceeds gold inflationary increases...
as a storehouse of true value ,in the face of inflation. Unless
you can time the bottom and the top, or are an
astute trader, it is not normally considered a true
investment.
Camelot
True. But then again, NOTHING these days is a TRUE investment.
Gold does perform as an appreciating asset during cycles where paper equities are underperforming (think 1966 to 1980 and 2001-?). People's memories are short as to what occured before the age of Central Bank gold manipulation and widespread jacking of M3.
Currently, most major nations have M3 growth in the double digits...no wonder the FED wanted to hide our numbers. This a world-wide fiat extravaganza. Hold on. And this won't be inflationary?
One could say that things most people don't consider true investments (Gem Lincolns or Washingtons in 1990, Moderns 10 years ago, rolls of circ Indians or wheat pennies, or Copper and Nickel the past few years for example) often find a way of becoming the contrarian investment when least expected.
Once an item is generally considered a "true investment," it's probably on it's way downhill as an investment. Who considered stocks a TRUE investment from 1966-1982? Very few by 1982!
And just because one got in at the bottom and sold near the top, certainly does not ensure that such item was an investment (ie beannie babies). What it does mean is that you made money at the expense of others who lost money.
Jim Sinclair's $682 ANGEL has fallen. On to the next ANGEL!
roadrunner