18.12.2014 - Gold Miners 'Don't Think Price Will Fall', Hedging 'Still Isolated'
Gold Miners are still not hedging their future production despite the recent price-drop to new 4.5-year lows, says the latest expert analysis, as zero interest rates and falling energy prices are deterring forward sales to lock in current prices. "There is not yet compelling evidence to indicate an extended rise in the volume of hedging by gold miners," says Matthew Piggott, senior precious metals analyst at Thomson Reuters GFMS, introducing the consultancy's Q3 2014 report for French investment bank and bullion market maker Societe Generale on Tuesday. Growing 57 tonnes by weight in the first 9 months of 2014, the global gold mining hedgebook – the amount of unmined production effectively sold in advance to lock in prices – fell between July and October, says GFMS, dropping some 6 tonnes as new output was delivered to meet existing contracts...........................................Full Article: Source
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