17.07.2013 - Gold slump revives hedges scrapped during bull run: Commodities
Tumbling gold prices are raising the prospect of a return to hedging - a strategy that’s been shunned by investors and producers who spent at least $10 billion at the end of the last decade unwinding forward sales. “You can’t just stick your head in the sand and pray that gold is going to go back up again,” Gavin Thomas, chief executive officer of Sydney-based Kingsgate Consolidated Ltd. (KCN), operator of Thailand’s biggest gold mine, said by phone. He’s considering hedging despite investors’ resistance. “Hedging is a call on gold. If you believe it’s going up you don’t hedge, if you believe it’s going down you do hedge.”..............................................Full Article: Source
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