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<p>[QUOTE="GoldFinger1969, post: 26586825, member: 73489"]<b><i>Really great post, Prince. </i></b><img src="styles/default/xenforo/clear.png" class="mceSmilieSprite mceSmilie33" alt=":cigar:" unselectable="on" unselectable="on" /></p><p><br /></p><p>I wonder why hedging would be such a concern though. If you ARE in the business of buying and selling silver, unless the price spiked ASTRONOMICALLY...a slowly rising price, even to new ATHs, shouldn't be a concern, right ? You make your spread on the way up...and even if you lose a bit buying at the high....if it declines, you keep replenishing at lower levels and adjusting your retail/wholesale prices on the way down to make a profit. And of course, silver also has periods where it is flat in price and you find it much easier to make a profit.</p><p><br /></p><p><b><i>So IS hedging a really big need except when the price is extremely volatile ? </i></b> I mean, if your ran a hamburger stand the the price of meat kept going up, you wouldn't really need to hedge so long as you just kept raising prices to cover rising meat costs and inventory cost changes. Assuming no leverage (borrowed $$$), that is.</p><p><br /></p><p><i>Am I somewhat correct ?</i>[/QUOTE]</p><p><br /></p>
[QUOTE="GoldFinger1969, post: 26586825, member: 73489"][B][I]Really great post, Prince. [/I][/B]:cigar: I wonder why hedging would be such a concern though. If you ARE in the business of buying and selling silver, unless the price spiked ASTRONOMICALLY...a slowly rising price, even to new ATHs, shouldn't be a concern, right ? You make your spread on the way up...and even if you lose a bit buying at the high....if it declines, you keep replenishing at lower levels and adjusting your retail/wholesale prices on the way down to make a profit. And of course, silver also has periods where it is flat in price and you find it much easier to make a profit. [B][I]So IS hedging a really big need except when the price is extremely volatile ? [/I][/B] I mean, if your ran a hamburger stand the the price of meat kept going up, you wouldn't really need to hedge so long as you just kept raising prices to cover rising meat costs and inventory cost changes. Assuming no leverage (borrowed $$$), that is. [I]Am I somewhat correct ?[/I][/QUOTE]
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