big if......... the bulk of the commercial short was put on long ago at lower prices...so if cost of production and delivery go past break even, the short hedge starts to grow fangs...............
My cousin's capital management company owns a silver mine. They do not reveal that mining operations have discovered silver reserves, for them it's a matter of increasing stock value while they are still looking for silver, not delivering it. Silver fundamental valuation is such a broad subject that it will do it no justice trying to discuss it with a few sentences here.
Even Bill Gates has interest in a silver, and he is in software developing industry, which has nothing to do with physical commodities, why silver I ask u?
Tom, so who is going to pay the maintanance margin then which has to be in cash? It's easy to go broke by hedging even if you've got all the silver you need (but of course it will be in the ground). A few big Silver Miners notably I think the largest one in Peru went bellyup just for this reason (in 1980). They hedged at the 'unbelievably' profitable level of $20 but then the brokers bankrupted them for unpaid margin when Silver hit $40+. It's one of the real life quirks of futures, sometimes you can do everything 100% as the textbooks advise but in reality, when it comes down to hard cash things are a lot different.
His pal Buffett told him to buy. The weasel most probably wanted someone high profile (with lots of cash) to help support his position Anyone else not get taken in by Buffett's 'folksy' act. Same with Sam 'I'm nothing but a hick farmboy from nowhere' Walton. Yep, sure you are - like inbred hicks have the talent to build multi billion retailing empires.