Many of you will recall when Ashanti "blew-up" in 1999 by not being able to make good on their obligations. Flashback article below.
|Chart from 2009. Forward hedges seem to have been nearly exhausted.|
Time for the banking cartel to repeat the scam again?
Thinking a little deeper behind the late metals crash, this would be a great opportunity for the banksters to "buy" the forward mining production ounces at forward prices higher than currently. With the bankers holding hoards of free taxpayer money, couldn't they just apply those funds to buy-up all future gold and silver for themselves?
Anyone out there tracking the miners' forward contract hedges? Isn't this something we should be following?
October 7, 1999
Some gold-producing companies made financial bets to protect them against further declines in gold prices, and those bets cost them money when gold prices shot up unexpectedly.
Traders said some of the dealers had structured their own side of the transactions to reduce their net exposure. What is more, the size of the dealers' exposures -- which has reached an estimated $500 million or more for the 17 members -- fluctuates daily with the price of gold.