More gold bar vending machines open up in Dubai
Jan 28th 2011, 4:18 am
#1
Lost in BE Cyberspace
Thread Starter
Joined: Jul 2007
Posts: 13,553
More gold bar vending machines open up in Dubai
I know we discussed this a while back, but something has been bothering me...... the article states: "The price of the bars will fluctuate to represent the spot price of gold."
But the machine has to be stocked in advance, which means the gold has to be purchased first (obviously) - so if the market spot price then falls, will the operators of the machine be happy that they will be selling the gold at a loss?
http://en.news.maktoob.com/200900005...ai/Article.htm
But the machine has to be stocked in advance, which means the gold has to be purchased first (obviously) - so if the market spot price then falls, will the operators of the machine be happy that they will be selling the gold at a loss?
http://en.news.maktoob.com/200900005...ai/Article.htm
Jan 28th 2011, 4:25 am
#2
Lost in BE Cyberspace
Joined: Aug 2009
Location: Disneyland, Dubai
Posts: 15,887
Re: More gold bar vending machines open up in Dubai
I know we discussed this a while back, but something has been bothering me...... the article states: "The price of the bars will fluctuate to represent the spot price of gold."
But the machine has to be stocked in advance, which means the gold has to be purchased first (obviously) - so if the market spot price then falls, will the operators of the machine be happy that they will be selling the gold at a loss?
http://en.news.maktoob.com/200900005...ai/Article.htm
But the machine has to be stocked in advance, which means the gold has to be purchased first (obviously) - so if the market spot price then falls, will the operators of the machine be happy that they will be selling the gold at a loss?
http://en.news.maktoob.com/200900005...ai/Article.htm
More likely though they just haven't thought this through and have a graph with the gold price constantly rising and are assuming it will continue on that path forever.
Jan 28th 2011, 5:24 am
#3
Account Closed
Joined: Jul 2007
Posts: 7,028
Re: More gold bar vending machines open up in Dubai
I know we discussed this a while back, but something has been bothering me...... the article states: "The price of the bars will fluctuate to represent the spot price of gold."
But the machine has to be stocked in advance, which means the gold has to be purchased first (obviously) - so if the market spot price then falls, will the operators of the machine be happy that they will be selling the gold at a loss?
http://en.news.maktoob.com/200900005...ai/Article.htm
But the machine has to be stocked in advance, which means the gold has to be purchased first (obviously) - so if the market spot price then falls, will the operators of the machine be happy that they will be selling the gold at a loss?
http://en.news.maktoob.com/200900005...ai/Article.htm
Jan 28th 2011, 5:28 am
#4
Account Closed
Joined: Jul 2007
Posts: 7,028
Re: More gold bar vending machines open up in Dubai
maybe they hedge their position based on expected sales... just like mortgage provider pre-hedges fixed interest rates based on expected uptake.
More likely though they just haven't thought this through and have a graph with the gold price constantly rising and are assuming it will continue on that path forever.
More likely though they just haven't thought this through and have a graph with the gold price constantly rising and are assuming it will continue on that path forever.
Jan 28th 2011, 10:20 am
#5
BE Forum Addict
Joined: Aug 2009
Location: Dubai
Posts: 4,017
Re: More gold bar vending machines open up in Dubai
maybe they hedge their position based on expected sales... just like mortgage provider pre-hedges fixed interest rates based on expected uptake.
More likely though they just haven't thought this through and have a graph with the gold price constantly rising and are assuming it will continue on that path forever.
More likely though they just haven't thought this through and have a graph with the gold price constantly rising and are assuming it will continue on that path forever.
