Gold hedging at 11 year low
Duncan Richardson, News Editor
29 Jan 2014, 11:52 a.m.
The amount of gold sold forward by mining companies fell to an 11 year low in the third quarter of 2013. According to Societe Generale and Thomson Reuters the total amount of hedged gold fell by 6 tonnes to 92 tonnes.
By selling their production forward, miners have certainly over future revenues and can protect themselves from future price declines. Generally investors view hedging negatively as they lose exposure to future price increases.