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Search: Posts Made By: RM99
Forum: Commodities March 23rd, 2011, 02:51 AM
Replies: 99
Views: 27,357
Posted By RM99
any time you make a decision based on...

any time you make a decision based on anticipation or what might happen in the future, you are speculating.

I don't care if you're trying to flip a house, if you're getting a business loan...
Forum: Commodities March 21st, 2011, 10:46 PM
Replies: 99
Views: 27,357
Posted By RM99
Sorry that we hijacked this thread. Back on...

Sorry that we hijacked this thread. Back on topic.....oil prices are crazy eh?
Forum: Commodities March 21st, 2011, 10:44 PM
Replies: 99
Views: 27,357
Posted By RM99
The farmer is a perfect example. He "locks in"...

The farmer is a perfect example. He "locks in" price at the current price and his only risk is the spread between the current contract and the month he bought it.

A true hedge is an exchange of...
Forum: Commodities March 21st, 2011, 10:17 PM
Replies: 99
Views: 27,357
Posted By RM99
Again, I see buying at a price now because you're...

Again, I see buying at a price now because you're anticipating a price increase as speculation, regardless of your motives.

I see selling an equal amount of BZ for every CL you buy as a true...
Forum: Commodities March 21st, 2011, 09:36 PM
Replies: 99
Views: 27,357
Posted By RM99
We're def talking semantics, but here's why I...

We're def talking semantics, but here's why I think we're talking apples/oranges. We both agree on what a "typical" sense of a speculator is.

I agree with you that buying or locking in with a...
Forum: Commodities March 21st, 2011, 09:08 PM
Replies: 99
Views: 27,357
Posted By RM99
Buying now because you think prices will increase...

Buying now because you think prices will increase is not hedging, it's speculating.

Buying an option in both directions (where you can lose a little bit of money on the cancelled option, but save...
Forum: Commodities March 21st, 2011, 07:55 PM
Replies: 99
Views: 27,357
Posted By RM99
I think that's exactly what I said. Whether it's...

I think that's exactly what I said. Whether it's an airline trying to lock in at a lower cost (to reduce operating costs) or the speculator who's trying to make a $, both aren't buying based on the...
Forum: Commodities March 21st, 2011, 07:14 PM
Replies: 99
Views: 27,357
Posted By RM99
Agreed, but the point of speculation is that he's...

Agreed, but the point of speculation is that he's willing to pay that price, not because that is its value today, but because he's anticipating a future increase in price and he's trying to lock in...
Forum: Commodities March 20th, 2011, 01:51 PM
Replies: 99
Views: 27,357
Posted By RM99
All I'm saying is that for speculation to have...

All I'm saying is that for speculation to have significant effects, it's a sign of a manipulated market.

Imagine if we established an Organization for Food Exporting Countries (OFEC) and what it...
Forum: Commodities March 20th, 2011, 01:16 PM
Replies: 99
Views: 27,357
Posted By RM99
I'm not blaming OPEC for all the price increases,...

I'm not blaming OPEC for all the price increases, you are correct...QE is definitely to blame for anticipated inflation, I'm simply talking about the recent events in Egypt and Lybia...where we saw...
Forum: Commodities March 20th, 2011, 01:10 PM
Replies: 99
Views: 27,357
Posted By RM99
OPEC controls 44% which IS significant and you're...

OPEC controls 44% which IS significant and you're missing the point. SPECULATION is based upon anticipated supply/demand. Furthermore, even though a nation like the US is the 3rd largest producer,...
Forum: Commodities March 20th, 2011, 12:10 PM
Replies: 99
Views: 27,357
Posted By RM99
It's also noteworthy and interesting that we...

It's also noteworthy and interesting that we export more food than any other nation, but manipulating food prices would seem criminal in the minds of not only a great deal of our own citizens, but...
Forum: Commodities March 20th, 2011, 12:06 PM
Replies: 99
Views: 27,357
Posted By RM99
Thanks, I understand that it's fear,...

Thanks,

I understand that it's fear, anticipation and speculation that drive the prices, but the underlying reality that helps the frenzy is manipulation in the market.

Just as you stated...
Forum: Commodities March 19th, 2011, 03:02 PM
Replies: 99
Views: 27,357
Posted By RM99
This is a great thread. One thing that's...

This is a great thread.

One thing that's not being addressed is the ratio of institutional or block trade speculators and individuals.

I agree that consolidation of speculation is harmful (in...
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