silver hedging, page-10

PP,

You either believe a long term trend is in place or you don't. No ne can ga jumping around month to month on futures pricing.

So, judging the situation in Euro and US does it look sound to anyone next week, month, end of year? Do Asians and Indians have historical preference for gold and silver as a store of wealth. Are they getting wealthier?

To me the hedging in place is appropriate and at the time what was done has to be done. Theidea that silver is going back to 20 could be true, but not any time soon - think at least three years. Will it get to 40, yes, 30 possibly in a major meltdown and cash squeeze, but cash ism't the problem these days.

None of the majors have anything like the hedging they had for years. Barrick was the last one to unhedge and they are not going back to it, neither is anyone else.

I think trawling over this ground is unproductive unnecessary finessing. We have insurance already, the company shouldn't go broke and disappear from the ASX. All effort now should be focussed, and is, on resource increasing and production. It is. BSM is not Coles or ANZ, so expecting a 5x sp increase means volatility and uncertainty.

I also think you don't understand hedging. The Hedge contract guarantees we sell at $ an amount x ounces. The upside goes to the other side, and the losses when price less than the strike price go to BSM. Unfortunately the other side took a gamble when they stood on the other side of the hedge for the upside. If anything, this support my contention the other side knows more than we do and silver isn't coming back to the strike price anytime soon.