Quote Originally Posted by BetterSense View Post
Any smart manufacturer that is beholden to commodity prices will have a strongly hedged position in said commodities. For example, trucking companies are heavily invested in oil futures, so that if the price of fuel spikes upward, they are not affected as much.
Not to mention the fact that most manufacturers have contracted delivery prices for several quarters out. That's part of the reason the quarterly demand reports we devour so rabidly are calculated. They have to project for their suppliers in the contract, so they look at both long term and short term trends for the model.

For example, if there is a seasonal spike for the past 30 years of X%, but a yearly decline over the past 5 years of Y% they aren't going to buy for the season like they did 30 years ago. It's just common sense when you look at it, but it's a bunch of number crunching none the less.

While I don't sit on Ilford's or Kodak's financial advisory committee (1), so I cannot speak with any real authority, I'll bet you an unopened roll of K64 that they see less volatility in their silver price than the spot market.

(1) I'm not sure my wife even likes for me to sit on our household financial advisory committee!!