Hi DubA recent World Gold Council publication compared stock...

Hi Dub

A recent World Gold Council publication compared stock market returns of the world blue chip gold mining companies in the first 6 months of this year. Hedgers v Non-hedgers.

Amazingly hedgers were way in front in terms of percentage price rise.

The article did not offer reason as to why it was the case.

One potential reason is that institutions are responsible for the price rises on most decent capitalisation stocks. Not mums and dads.

Institutions are by nature risk averse and perhaps favour companies that have hedging to decrease market risk intheir investments. This is only my own postulation.

Either way you should first check out whether buying non-hedged gold stocks actually works in your favour......it may not be the case. A little research on Aussie stocks may be interesting.

acturtle