Guest Post: Recent Gold Hedging Activity – a Warning Sign?

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Wed, 08/17/2011 - 18:13 | 1570722 FunkyMonkeyBoy
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I thought this was Zero Hedge? Pussies.

Wed, 08/17/2011 - 18:20 | 1570734 JW n FL
JW n FL's picture

FMXconnect did a wayyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyyy better job a couple days ago.. on the collar trades.. $1,700 - $2,000.


Wed, 08/17/2011 - 18:29 | 1570766 Fukushima Sam
Fukushima Sam's picture

OT, but important for those who get most of their news from ZH...  ;-)

Workers at Fukushima claim that cracks are appearing in the ground at the plant and radioactive steam is escaping form the cracks.

If true, this could be the start of the China Syndrome scenario.

Not good...  :-(

Wed, 08/17/2011 - 18:46 | 1570811 JW n FL
JW n FL's picture

Thanks for the Heads Up!!

++++++++++++++++++ on we are all going to die soon!

if we were back in Greek times I would have you killed.

get it? kill the messenger?


Thu, 08/18/2011 - 03:32 | 1571747 Thorlyx
Thorlyx's picture

It seems, the core has left the building.....

Wed, 08/17/2011 - 18:47 | 1570816 Gringo Viejo
Gringo Viejo's picture

Where the fuck is that skank Fonda when you need her?

Can I get a fuckin' witness here?

Wed, 08/17/2011 - 18:49 | 1570820 JW n FL
JW n FL's picture

Amen!! Preach It!!

Drill Baby Drill!

Wed, 08/17/2011 - 20:14 | 1570977 narapoiddyslexia
narapoiddyslexia's picture

Sort of OT question, but not much. Silver and gold have been moving in lockstep for the last 20 hours, even down to the smallest moves.

Anybody know why? Recently, they've been ignoring each other?

Wed, 08/17/2011 - 21:21 | 1571104 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture


Thu, 08/18/2011 - 08:55 | 1572156 IrritableBowels
IrritableBowels's picture

I noticed this too.  Any info is good info...

Wed, 08/17/2011 - 21:21 | 1571101 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

I thought she looked pretty good in "Klute".  Last time I saw her was at a movie theatre in Santa Monica with her then husband Tom whatever a politician at the time.

Wed, 08/17/2011 - 22:45 | 1571345 RockyRacoon
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She was on Charlie Rose just last night promoing a new book.

Thu, 08/18/2011 - 01:45 | 1571646 Oh regional Indian
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Well, a Charlie "Look at my Gravitas" Rose appearence means she too is establishment. 


Wed, 08/17/2011 - 18:48 | 1570818 JW n FL
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Workers at Japan's Fukushima plant say the ground under the facility is cracking and radioactive steam is escaping through the cracks. The cooling system at the plant failed after the devastating tsunami hit Japan in March, sparking a nuclear crisis. But new evidence suggests that Fukushima reactors were doomed to cripple even before the massive wave reached them. RT's Anissa Naouai talks to Dr. Robert Jacobs, a Professor at the Hiroshima Peace Institute.

Wed, 08/17/2011 - 18:55 | 1570839 slewie the pi-rat
slewie the pi-rat's picture

t.y., F_u_sam!

we may have a new volcano, soon, eh? 

nothing to see here...tents will be in place, conditions permitting, for those who are not raptured.  trust us!

Wed, 08/17/2011 - 21:18 | 1571094 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

F. S.  I have been taking:  sea adine, Spirulina and liquid zeolite since March as have my loved ones.  Most people give this no thought but this is a growing calamity and clean up will take 10-20 years.  I choose not to die a lingering cancerous death decades from now because I thought it couldn't happen to me.  Thanks for your intermittent posts on this truly scary issue. 

One thing I just found out is that last spring hippo hips Hillary Clinton made a deal with the Japanese agreeing that foodstuffs coming from Japan to the U. S. are safe and need not be monitored for radiation.  (Remember when right after 9-11 EPA Director Christie Todd Whitman said the air in NYC was safe to breath.)  To date more people have died from the results of contaminated air after 9-11 than died in the direct attacks.

Thu, 08/18/2011 - 00:47 | 1571592 dollarslide
dollarslide's picture

@Tuco - you might want to check out ZeoForce zeolite (powder) on Amazon, it has better potency reviews. Chlorella is good too.

Wed, 08/17/2011 - 21:24 | 1571114 Triggernometry
Triggernometry's picture

Regretably much appreciated, thanks for the link. 

This can only mean the corium (molten fuel) has melted its way down to bedrock.  FUCK

I had been hopeful the Japanese would have contained this within ten years.  Compared with Chernobyl, which is due to finally be completely sealed off in 2015, I had a good degree of confidence Japan would have tackled this catastrophe efficiently; if indeed the corium has reached bedrock, it is likely to never be fully contained.  This is horrible news for the world, even worse for Japan.

Wed, 08/17/2011 - 21:26 | 1571119 Bullionaire
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Crap.  That "George Washington" dude was right all along.





Wed, 08/17/2011 - 21:50 | 1571186 JW n FL
JW n FL's picture


Georgie is the shiiizzzelll!

Wed, 08/17/2011 - 22:40 | 1571234 gall batter
gall batter's picture

OT--macondo oil well still leaking, according to this blogger, but i haven't seen anything to verify:

Wed, 08/17/2011 - 22:57 | 1571375 bbbilly1326
bbbilly1326's picture

WOW,  only 3 posts in, and the whole article is hi-jacked, away from discussion of gold, on to Fukushma.......these be some high class whores...........

Mon, 04/16/2012 - 02:25 | 2347943 jaffa
jaffa's picture

The farmer has hedged his exposure to wheat prices, he no longer cares whether the current price rises or falls, because he is guaranteed a price by the contract. He no longer needs to worry about being ruined by a low wheat price at harvest time, but he also gives up the chance at making extra money from a high wheat price at harvest times. Thanks.
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Tue, 05/01/2012 - 07:33 | 2387667 jaffa
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Investment and accumulation goals is planning how to accumulate enough money for large purchases, and life events is what most people consider to be financial planning. Major reasons to accumulate assets include, purchasing a house or car, starting a business, paying for education expenses, and saving for retirement. Thanks.
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Wed, 08/17/2011 - 20:29 | 1571004 centerline
centerline's picture

Need to get some conversation going somewhere regarding the Roubini versus ZH subject that has kicked up today.  Of course, it also means ZH gets some more deserved attention too.

Wed, 08/17/2011 - 18:18 | 1570741 Cult of Criminality
Cult of Criminality's picture

Moles are eating my hedge

Wed, 08/17/2011 - 23:44 | 1571467 rosiescenario
rosiescenario's picture

...get yourself a rodentator....and some ear plugs.

Wed, 08/17/2011 - 18:20 | 1570745 caerus
caerus's picture

i'm short...i'll admit r now...long goldschlager...

Wed, 08/17/2011 - 18:20 | 1570748 robertgray
robertgray's picture

A gold business must hedge their production. They are not speculators. They are producers. They must sell all they can at a profit. If they can lock in a profit now, that is for the best. The company (and jobs) will be here next year then.

If they held onto more gold, they would get crushed in a downturn. Cash flow is key for miners.

Wed, 08/17/2011 - 18:30 | 1570767 disabledvet
disabledvet's picture

Besides who says the bank won't just sit on the gold?

Wed, 08/17/2011 - 21:09 | 1571076 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Wrong!  If they want shareholders they'd better not limit entirely any upside potential in the underlying asset.  Best to hedge a percentage, not all.

Wed, 08/17/2011 - 23:47 | 1571476 rosiescenario
rosiescenario's picture

Yeah, as a former shareholder of ABX I was just delighted by their hedging....a brilliant strategy.

After all investors buy gold or silver miners because they believe the price of the metal is going up....they do not want to find out production was sold forward at today's price.

Thu, 08/18/2011 - 00:31 | 1571577 Spitzer
Spitzer's picture

I have heard from many sorces that base metal miners are not very brite. It makes sense that they would put themselves in a losing position.


Wed, 08/17/2011 - 18:21 | 1570749 dumpster
dumpster's picture

sure berrick gold was putting hedges in at 300 gold .. they really had it nailed

hedgers are not the brightest bulbs in the room



Thu, 08/18/2011 - 01:48 | 1571652 Oh regional Indian
Oh regional Indian's picture

dumpster, Barrick is a Khassogi/Bush/Some Canadian oligarch play. The details are available all over th eweb and print.  As are most large miners in the world.

You think they will own the physical and not own the source? Gold is not a safe haven in my book. Too many surprises hidden up their sleeves.


Wed, 08/17/2011 - 18:21 | 1570752 DonutBoy
DonutBoy's picture

It's not "normal" gold time.  The global fiat currency collapse thing seems to happen about once, oh let's see, about once so far in human history.  The nation or nation's backing the three largest tradable currencies, dollar, yen, and euro, are all insolvent and they can't hide it.  I suppose one could compare it to debasement of Roman currency, arguable global, but not fiat.

This is all new, we're off the reservation.  Mining hedges don't tell me anything about what money is going to be 5 years from now.

Wed, 08/17/2011 - 18:33 | 1570774 oblonsky
oblonsky's picture

this time is different.

Wed, 08/17/2011 - 18:35 | 1570779 caerus
caerus's picture


Wed, 08/17/2011 - 18:41 | 1570798 DeadFred
DeadFred's picture

Those one-in-a-trillion events seem to be happening a lot more often nowdays. This time is very different in many ways.

Wed, 08/17/2011 - 20:47 | 1571032 Manthong
Manthong's picture

A trillion ain't what it used to be.

Wed, 08/17/2011 - 18:27 | 1570755 caerus
caerus's picture

btw slim "hedged" his ag a while back...just saying...

Wed, 08/17/2011 - 20:19 | 1570991 Temporalist
Temporalist's picture

This article is for you:

Carlos Slim Owns A Fucking Silver Mine

Wed, 08/17/2011 - 20:36 | 1571001 caerus
caerus's picture

hell I knew that already thanks though

btw minera frisco owns six mines I least five mine ag if I remember correctly

Wed, 08/17/2011 - 18:29 | 1570763 Flakmeister
Flakmeister's picture

Some juniors are forced to hedge in order to secure the financing needed for developement. GSS probably fall into this category....

Wed, 08/17/2011 - 18:35 | 1570781 breezer1
breezer1's picture

the big money is getting physical from the mines and buying future production with lose little deals. the miners are being shorted heavily and weak hands are leaving in disgust. the strongest hands for the most part happen to be the biggest crooks. most here know the names. 

there is nothing safer in these perilous times than physical. if they return to gold based paper then they will have to devalue against it and if not its happening anyway.

i have trouble understanding why anyone would be anything but physical at this point.


Wed, 08/17/2011 - 18:54 | 1570836 --Freedom--
--Freedom--'s picture

Slightly off topic, but worth a try: I have a good portion of my money in physical gold and silver, but also a good portion in PHYS, Sprott's gold trust. Any opinion on the safety of this? I've read everything i can find online and it seems safe. Seems a lot better than GLD, obviously, but am considering liquidating and going to coins.
Thanks in advance if anyone has any thoughts or experience with PHYS.

Wed, 08/17/2011 - 19:05 | 1570866 High Plains Drifter
High Plains Drifter's picture

just curious. but do you live in canada or the lower 48?   the reason why i ask, isn't sprott located in canada?  might make a difference if one day, you wanted your stuff and then we have the weird shipping situations going on nowadays.

Wed, 08/17/2011 - 19:22 | 1570896 --Freedom--
--Freedom--'s picture

I live in the lower 48, but not too far from the bank where the gold is. But I just read that you need to have around 600k in the fund to be able to redeem for physical. I have much les than this, so I would only be able to trade the ETN. I would think it would keep it's value much better than other paper gold, but, still, it's a bit unsettling.
By the way, I've appreciated your posts on ZH the last few months I've been reading the threads.

Wed, 08/17/2011 - 21:05 | 1571068 chubbar
chubbar's picture

I believe the redemption is in 400 oz bars only so you can do the math with regard to how many share would equal that amount taking into account the present discount/premium on NAV.

Wed, 08/17/2011 - 21:02 | 1571058 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Sprott seems trustworthy, but look what happened to Kitco, a highly respected company.  Big brother can come in at any time and shut down the entiry holding your gold and you are screwed!  Keep it, "cool, dry and nearby"!  I invented that phrase by the way.  Hasn't made me a dime though (90% of course):)

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