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<p>[QUOTE=&quot;GoldFinger1969, post: 2073256, member: 73489&quot;]Are they hedging against an EXTRAORDINARY move in the price, or the everyday fluctuations ?&nbsp; It seems more the latter.</p><p><br /></p><p>That costs money, and I&#039;m not sure it&#039;s the best use of their working capital.</p><p><br /></p><p>If they do a few hundred thousand coins a week (?) then the existing inventory losses aren&#039;t a problem since they can replenish at a lower price.&nbsp; Unless the price CONTINUALLY goes down, they shouldn&#039;t be affected by price movements.&nbsp; It should cancel out in the income statement rather than sit on the balance sheet as a series of big losses.</p><p><br /></p><p><br /></p><p>They could be hedging....depends on what kind of instruments they are using.&nbsp; But with narrow margins, I maintain hedging NORMAL commodity volatility is very prohibitive.</p><p><br /></p><p><br /></p><p>Yes, but big rises too, right ?&nbsp; And when it falls, they replenish inventory they may have sold at a loss and then reap gains when it bounces back, no ?[/QUOTE]</p><p><br /></p>

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