Fri, Nov 28, 2014
A A A
Welcome kbr175@gmail.com
RSS

Commodities Briefing - Categorized | Bullion/Gold, Metals and Minerals more

A double-hedged sword for gold miners

Posted on 07 August 2013

You might see seven, but in gold-mining circles “hedging” is a four-letter word. On Newmont Mining’s recent earnings call, one analyst even owned up to having published a report on hedging and felt the need to add that he had “not heard a death threat yet.” Hedging gets a bad rap for two reasons.
First, locking in a price for gold limits potential profit gains. Second, the sector’s history with hedging hasn’t been happy. Once the bull market in gold got going in 1999, many hedge books became a drag on profits. Investors cheered in 2009 when Barrick Gold, the world’s largest gold miner by output and one of the last hedging holdouts, said it would unwind its remaining positions………………………………………..Full Article: Source


 Article link

This post was written by:

VRS - who has written 38189 posts on Opalesque Commodities Briefing.


Contact the author

Comments are closed.

banner
November 2014
S M T W T F S
« Oct    
 1
2345678
9101112131415
16171819202122
23242526272829
30