Hi guys,
Hedging is a great tool do mimimise risk but it can also work against you in a very big way.
If we hedge our copper with PNA then we are locked in US$
Lots of analysts believe that the US$ will fall in the next couple of years agains the other currencies due to its money printing culture.
So we may see that the copper price will go up a lot in US$ terms while we have hedged it in the near to medium future with and with other currencies having appreciated against the US$ we would have lost even more money.
Hedging is more then just a two hedged sword it can be very dangerous especially if its done in a weak currencey like the US$ is finding it self in.
Be carefull
jojo
- Forums
- ASX - By Stock
- PNA
- policy of hedging 50% at us$1.45/lb copper
policy of hedging 50% at us$1.45/lb copper, page-16
-
-
- There are more pages in this discussion • 12 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)