RE:RE:RE:Zinc up to $1.27AlfTanner wrote: The pandemic is quickly ending and the economic recovery will also be quick. Demand for commodities is going to increase a lot as governments try to spend money on things like infrastructure.
You do not hedge in a bull market. Zinc is in an obvious bull market.
You hedge when the bull market ends. Why was I the only poster calling for hedging in 2019?
Hedging is going to cost investors a lot of money over the next year. If you do not like money, why not just burn it in a camp fire? Personally, I like to make money, and I do not want bone headed management burning my money.
Alf, I know we all like to debate things on these boards but the comment that the pandemic is quickly ending is just ignorant. There are mutations happening in the virus causing new variants, vaccine distribution has been at a trickle even in developed countries and the possibility of another wave in Spring/Summer as people ignore restrictions/go out is likely. Alot of countries where companies have their mines are in far worse shape than others which likely will mean ore economic sufferring for at least a year. Even if the US government passes a covid relief package, their hope is that the bulk of lost jobs might strongly recover by mid to late 2022.
Hedging was good at the time and maybe they hedged too much percentage of their production but the level of uncertainty in the world and the markets along with the debt that the tariff war and covid pandemic caused, forced the companies hand.