I meant the company bean counters. The CFOs and MDs. The hedgers are the bean counters.
I don't make myself very easily understood.
My points on fracked oil might be lost too. The media is not telling it as it is. The industry does, and it is summed up in the chart above.
My underlying premise for a floor in POG near current all in costs is that demand for ounces will remain strong in the East. I could prove wrong on that, but I have a couple of leading indicators, so happy to change position if and when it happens.
I've never ever said that POG can't fall below current all in costs, I only argue that produced ounces can't sustainably fall without price protection or debt. Ha ha - and the appetite for debt at the moment is about zero. The cycle of lowering costs, increasing head grades and maxing over nameplates is nearly done - although oil has come in late and given a extra free kick.
As an aside, the analogies others are making with oil, are not understanding oil beyond Reuters or Bloomberg headlines. There could easily be another 12 months at current prices with increased production and no one important going belly up. There is also politics at play. I'm too "fearful" to go long oil just yet.
