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<p>[QUOTE=&quot;Burton Strauss III, post: 26651841, member: 59677&quot;]Neither.</p><p><br /></p><p>They had signed contracts to hedge the price of silver. Probably paid a little bit more than spot price of silver was in the $25-$30 range. And they were able to ride that pony until it died.</p><p><br /></p><p>Now they have to sign new hedging contracts which will lock them into a bit more than current spot price or they have to buy at spot.</p><p><br /></p><p>Either way, the silver -- which is a large part of their COGS -- is going to cost them a lot more.</p><p><br /></p><p>I&#039;m sure they&#039;re thinking that an 82% price increase when they&#039;re raw materials costing 300% more is actually restrained and proportionate.</p><p><br /></p><p>It&#039;s the price increase on the other non-precious metal sets where I think they&#039;ve lost their mind.</p><p><br /></p><p>But there&#039;s a long history of the mint refusing to understand the market they operate in and deluding themselves. Recall they blamed the shortage of silver coins in 1964 on collectors instead of the fact that the value of silver was pushing up against the face value of the coins.[/QUOTE]</p><p><br /></p>

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