Was waiting for the first silver company to buckle and start hedging at these so called "high prices". Unfortunately I'm sure many will follow. I'll put these companies on my "do not buy" list as they are helping the shorts by selling silver short as we speak.

stateside

U.S. Silver signs silver price protection program

2010-11-10 16:26 ET - News Release

Mr. Tom Parker reports

U.S. SILVER ANNOUNCES HEDGING TRANSACTION

U.S. Silver Corp. has concluded a silver price protection program with Auramet Trading LLC. U.S. Silver has secured a minimum price of silver at $27.50 (U.S.) per ounce on 500,000 troy ounces. The 500,000-ounce program covers equal quantities of silver for each calendar month during 2011. As security, U.S. Silver has provided an interest-earning cash collateral deposit of $3-million (U.S.) and has been granted a margin credit facility. This margin requirement will decrease as silver volumes are delivered throughout the 2011 year.

The hedge guarantees that the company will achieve meaningful positive cash flow above the current cost of production at the Galena mine. The price of $27.50 is among the highest prices recorded for silver over the past 30 years. While this program provides the security of positive cash flow on the 500,000 ounces sold, the company retains full upside potential on approximately 80 per cent of its estimated silver production for 2011.

Tom Parker, president and chief executive officer of U.S. Silver, stated: "With the recent runup in silver prices and the extreme volatility we have witnessed, U.S. Silver believed it would be prudent to guarantee a portion of our future cash flow. With the capital costs associated with the redevelopment of the Coeur mine and ongoing capital spending and exploration programs at the Galena mine, protecting a portion of our silver volumes at these high price levels is considered to be a wise risk reduction transaction. While U.S. Silver has historically been an unhedged silver play, securing a high selling price for approximately 18 per cent of our 2011 production is a prudent thing to do."