- Registration time
- Last login
- Online time
- 66 Hour
- Reading permission
This post was edited by gork at 2013-7-27 05:45|
Gold, which rose for 12 consecutive years, slipped into a bear market in April and has dropped 21 percent this year in New York. Goldcorp’s average realized price in the quarter was $1,358 an ounce, compared with an average of $1,417 an ounce on the Comex in New York.
. . .
Goldcorp sold about half of the gold and silver in the quarter in June, when gold prices fell to a 34-month low.
- Goldcorp Takes $1.96 Billion Writedown After Price Slump
Yes, like the smashdowns at the quietest periods which are guaranteed to get the worst prices, Goldcorp deliberately dumped as much as they could at the rock bottom price, just as crooked miners such as Goldcorp sold forward in the 1990s to keep prices low, calling them a "hedge" but which, instead of hedging potential losses, cost tens of billions to unwind as the scam failed and they're doing the same again now.
If the banksters are recipients of the cheap gold, they can confidently short the market until the miners go bankrupt and/or the gold supply dries up. By creating "volatility" in the gold price, they hope to herd the sheeple out of gold. Professional poker players, allegedly, never bluff, but then they probably never back themselves into a corner either. Herding out of gold is necessary as it protects against the hyperinflation. Reserve requirements are only just being RAISED to 3% from ZERO, resulting in apparent criticism from the UK's Vince Cable, calling the BoE "capital taliban". This ridiculously small reserve would mean the UK's M4 exploding to ￡15.6trn, ten times GDP or 1,000% inflation, when the banksters start lending to the limit as they are prone to doing. With Mark Carney being used for nothing other than to take the blame for this hyperinflation, his big achievement is to put a woman's face on a bank note.
Instead of selling forward, the proper way to hedge would be with options and instead of producing losses will produce gains: “Australian dollar denominated put and forward sale contracts became increasingly in-the-money during the second quarter,” said Matthew Piggott, analyst at Thomson Reuters GFMS.
. . .
Although most miners would rather not hedge, banks have required smaller producers to enter into hedging contracts as part of a lending or project finance agreement.
- Gold hedges reward Australian miners
With the price of gold now below production costs, any miner who "hedges" is a shill for the banksters.
As a result it makes absolutely no sense strategically for the banksters to be net-long in gold and net-short in silver – the two bets cancel each other out.
- No One Wants Paper-Called-Gold
Not true! If they short silver and go long gold, it makes silver look more attractive and the suckers will abitrage buying gold from abroad and swapping for silver in the US.