RE: RE: RE: RE: A picture is worth....?You are correct in that spot silver fell Nov.18 to 25th. from 29.34 to 25.00 ( a key support). For a loss of $4.34/oz. or 14.7%) Whereas USA.V fell Nov. 10 ( the date of the hedge announcement) to Nov.16 (PRIOR to the fall in silver) from .83 to .53 (-36%). This drop was not due to spot silver. Subsequently, USA actually fell from an intraday day high of .71 on Nov.18 to .62 on Nov.24. (Nov. 25th was higher.) Perhaps you could attribute this price action to silver and/or the hedge - I do not know. But this clearly shows that it was not the price of silver which immediately impacted, with strength, the price of USA.V on November 10, 2010.
As far as a "wise move to hedge", and this is going against the strong sentiments expressed here in the past by others, I would agree. Prudent - one might say. I made no comment about the impact of the hedge further down the curve to you - but yes I would agree that it will help the company if silver should plummet. As far as the .33 level is concerned, my analysis is based on market prices which already incorporate the fact that there is a hedge. It may not reach there - but until the charts change - I will continue to target that number.
I greatly appreciate your feedback and I hope your trades are profitable as well.
-Alphakodiak