I thought Silver was bought and sold on the Futures indices.
The problem with silver is that its price-evolution is even less predicitable as with other raw materials.
Hedging on raw material has been done.
I can't think of one instance in the 61 years I've been involved in photography when the price of film has gone down, so don't hold you're breath folks.
Silver on sale, 28% off; Maybe I'll buy more.
Well, it would be nice if the price of AgNO3 would drop a little. Actually, some vendors have dropped prices but they could drop some more.
Back in at least the film heydays of the late 1980's and early 1990's Kodak very actively traded in precious medals futures. They still might today. The wife of a friend I worked with for a number of years worked in that operation at the main headquarters. She once told me that, on paper anyway, Kodak sold almost as much gold and silver as they physically received. They'd sell off stuff bought at higher prices when they would predict that they could buy it back cheaper in the short term future because of some move they thought the market would make. They'd also sell metals bought at lower prices when the price went up and they projected it would drop again. It was quite the sophisticated operation. She'd told us that while they ended up wrong from time to time that overall they saved the company millions of dollars per year in precious metals costs. They also actively traded in various foreign currencies and other unrelated commodities. There were about 75 people working in that operation at the time.Quote:
However, I'm sure they hedge with futures contracts and other vehicles.