TSXV:SLX.P - Post by User
Comment by
farshooteron Mar 01, 2011 3:03pm
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Post# 18214068
RE: RE: Signs of silver scarcity point towards sur
RE: RE: Signs of silver scarcity point towards surI’m anxious to learn which producers have hedged their production.
Alasdair Macleod over at www.FinanceAndEconomics.org had this to say on the matter:
“The FT story implies the transactions were initiated by the mining companies. I think this is unlikely, there being a greater likelihood that it was initiated by one of the big commercials, such as JPMorgan. Bearing in mind these are forward transactions, they do not appear in the public domain, and can be completed at any price, giving the bullion bank the opportunity to do a very special deal with a nice fat premium for a possibly reluctant miner. And what better time to do this, when the price has fallen and there is uncertainty in the market.”
“So my guess is that it one of the Big Four [JPM?] covering its shorts, because there is no other way of doing so and the timing is opportune. Kind regards. Alasdair”
Ted Butler agrees with Macleod's assessement.