RE:RE:RE:RE:run shorty runif they put on that short at a higher price, they can cover to take that profit instead of watching gcm go back up and lose that profit.
invest234 wrote: if they covered their short they could make twice as much with both goldx and gcm. they are tying up a lot of cash and margin for an arbitrage that may not make much of anything, just the hope of another takeover bid which for so long has not happened. and they are losing money paying a divend too. if they really are the ones short. so far that arb has not been worth it, when they can use that cash to follow gold rising.
menoalittle wrote: quite likely that most of the GCM short position is also sufficiently long GLDX (it's called arbitrage,) so the move here is undoubtedly coming from real buyers. Which is no surprise, given both the last earnings report and where the price of gold appears to be headed. (I'm thinking 1950, in the short term... shortly after taking out resistance around 1870, of course.)