RE: RE: Close the hedge!!!!!!!!!!!!Firecracker, unless I'm missing something, I don't know how you're coming up with your contention of a major Q4 hedging loss. Per the Nov. news release:
"U.S. Silver has secured a minimum price of silver at US$27.50 per ounceon 500,000 troy ounces. The 500,000 ounce program covers equalquantities of silver for each calendar month during 2011. As security,U.S. Silver has provided an interest earning cash collateral deposit ofUS$3,000,000 and has been granted a margin credit facility. This marginrequirement will decrease as silver volumes are delivered throughoutthe 2011 year."
How do you figure that 50,000 ounces of silver sold at $27.50 each month in 2011 is going to have any impact on Q4 2010? Especially to the tune of millions of dollars? I would think that any potential loss due to the hedge would be calculated on the average price per ounce of silver for the upcoming Q1, Q2, Q3 and Q4. But I'm not even sure about that because I don't believe U.S. receives funds from Auramet until the silver is delivered each month starting last month (January).