re: emperors hedging banks won't allow hedgers to go bust,...

re: emperors hedging banks won't allow hedgers to go bust, creditors work with hedgers in order to manage an equilibrium between sales and creditors are guaranteed to recieve a portion of their risk. hedging shouldn't be a problem with competent management. the hedging problem is exasberated, management will re-jig their books if totally necessary. company directors in gold companies attend gold council meetings and seminars and have a fair idea of what is around the corner. gold hedging will never go away.
gold companies shortly begin to treat forecast sales like oil companies. oil companies with asset to debt ratio of 50% forecast sales at us$18 per barrel, anything higher than us$18 is a bonus to their forecasted revenues and profits. Gold companies will begin to forecast similar strategies, hedging just takes out the volatility and creditors recieve their guaranteed monies, no matter on the circumstance. the last thing creditors need is to make loan provisions for poor forecasting and hedging and then recieve no monies from gold companies.