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Here We Go!|
You've heard of "selling snow to the eskimos", but today, you'd have better luck selling gold to gold miners: "It could be a whole range of factors; a bullion bank may have overcommitted in the physical market, miners have reinitiated hedging programs since the April price dive and have to borrow gold to hedge, and that may have cascaded up the chain of physical demand," said Robin Bhar, commodities strategist at Societe Generale.
- Gold futures hiccup indicates demand outpacing supply
Yes, the corruption has extended into absolute farce. The gold miners, in violation of their fiduciary duty to their shareholders, waited until the price smashdown before locking in the low prices by selling forward and then calling it a "hedge".
Hold on to your hats. It looks like the wild ride much higher has started. JP Morgan's stocks have fallen yet again, the LBMA and ABN Amro have defaulted on gold, just as Nixon did in 1971, Comex, Brinks etc. are also seeing inventories dwindle, premiums are shooting higher, GOFO is negative, lease rates have doubled, futures are in backwardation.