Hedging, page-4

Hi Joel and Danny,

l follow the daily gold price but don’t project gold prices or trade in gold so I am more of a bystander ... my post was mainly to understand others thoughts around hedging at these levels ... hence starting the “Hedging” discussion.

Given what’s happening in the world one could assume Gold will push higher .... my basic take on hedging is that the counter party offering the hedge also believes the price will rise ... so the odds are in favour of the price rising. Counter to that there is some commentary that gold will ease back this year ... that maybe upended by the start of conflict in Europe.

I am sure hedging is not intended to make money or lose money but more to establish a minimum acceptable floor price for stability purposes. I see business stability as paramount for longterm operations and sp.

Thanks for your views. I hope others can offer a view here as well.