problem with gold is the same as it's always been. Price control in the City of London. If they want to crush the gold pride, they can just sell naked shorts, as they always do, and its game over. Risky is right. Problem is knowing when to get out at the right time before the big bullion banks start the crusher
So if we are holding a majority of junior PM Stocks in our risk portfolio how do we take advantage of the volatility of that market and protect from large takedowns.
Is there a consumer friendly fund (ETF?) that writes options against these downdrafts as it is not possible I understand against these individual stocks.
Yes, miners can hedge their production and lock in prices. Barrick did a lot of that years ago and missed out on a big gold run up for which they were criticized.
problem with gold is the same as it's always been. Price control in the City of London. If they want to crush the gold pride, they can just sell naked shorts, as they always do, and its game over. Risky is right. Problem is knowing when to get out at the right time before the big bullion banks start the crusher
So if we are holding a majority of junior PM Stocks in our risk portfolio how do we take advantage of the volatility of that market and protect from large takedowns.
Is there a consumer friendly fund (ETF?) that writes options against these downdrafts as it is not possible I understand against these individual stocks.
Good work John, can´´t wait for our " christmas present" $$
Can miners sell forward production now and "lock" in price and then deliver a.k.a next year. ??
Or even buy the next door neighboor. ?
Risky, if gold keeps rising...bugger, but they could then pay down all debts..?
Just me dreaming about banks getting what they have been doing all these years to Miners.
Yes, miners can hedge their production and lock in prices. Barrick did a lot of that years ago and missed out on a big gold run up for which they were criticized.