Ananthan you have completely exposed your ignorance. Please ask MF Global clients and Gerald Celente how buying futures contracts and taking delivery worked out....or ABN Amro clients...
But since you have resorted to ad hominem, and can't answer any real questions, I will just chalk you up to being another sheep and move on.
If they were GM or a bank, sure. They would just put the taxpayers on the hook. Any other company can't afford to produce things at a loss for very long.
With gold bears running rampant, J.P. Morgan’s new forecast for gold (GLD) to finish strong and trade near $1,700 by year-end is noteworthy. Among miners likely to benefit, the firm's favorites include Gold Fields (GFI +1.6%), which is least exposed to South Africa, and Sibanye Gold (SBGL +9.8%), which has lots of South Africa exposure but warrants an upgrade to Outperform from Neutral after plunging 38% YTD. [View news story]
I guess when they realized that smashing the price down results in their vaults being emptied that may have better luck reversing course.
"Remember that none of the points you just made have changed over the past 1.5 years"
Nope, you are correct. The problems have only gotten worse. In response to that, the market correctly no longer believes paper gold is the correct hedge.
The slamdown on gold, happened after clients of ABN Amro got this letter:
“ABN AMRO, the biggest Dutch bank, has sent a letter to its clients stating that they will no longer be able to take physical deliveries of the gold they have bought through ABN. Instead they are offered money at the current market rate for gold. Basically, instead of owning a risk free, physical asset (a gold bar or a gold coin), the bank’s clients now own a monetary claim on ABN AMRO, being exposed to the bank's credit risk."
Short Gold For The Long Haul [View article]
Short Gold For The Long Haul [View article]
But since you have resorted to ad hominem, and can't answer any real questions, I will just chalk you up to being another sheep and move on.
Short Gold For The Long Haul [View article]
by the way check gun and ammo prices lately?
Short Gold For The Long Haul [View article]
Low Silver Prices Will Dull Silver Wheaton's Earnings [View article]
Short Gold For The Long Haul [View article]
Short Gold For The Long Haul [View article]
Short Gold For The Long Haul [View article]
Short Gold For The Long Haul [View article]
If a miner is getting it out of the ground today, it has to deal with today's input costs. That is why gold at $900 means miners out of business.
Game/set/match.
With gold bears running rampant, J.P. Morgan’s new forecast for gold (GLD) to finish strong and trade near $1,700 by year-end is noteworthy. Among miners likely to benefit, the firm's favorites include Gold Fields (GFI +1.6%), which is least exposed to South Africa, and Sibanye Gold (SBGL +9.8%), which has lots of South Africa exposure but warrants an upgrade to Outperform from Neutral after plunging 38% YTD. [View news story]
Short Gold For The Long Haul [View article]
Short Gold For The Long Haul [View article]
Short Gold For The Long Haul [View article]
Short Gold For The Long Haul [View article]
what has energy prices done to input costs?
Short Gold For The Long Haul [View article]
Nope, you are correct. The problems have only gotten worse. In response to that, the market correctly no longer believes paper gold is the correct hedge.
The slamdown on gold, happened after clients of ABN Amro got this letter:
“ABN AMRO, the biggest Dutch bank, has sent a letter to its clients stating that they will no longer be able to take physical deliveries of the gold they have bought through ABN. Instead they are offered money at the current market rate for gold. Basically, instead of owning a risk free, physical asset (a gold bar or a gold coin), the bank’s clients now own a monetary claim on ABN AMRO, being exposed to the bank's credit risk."
any comment on that Ananthan?