In the past gold miners were forced by finance companies to take...

In the past gold miners were forced by finance companies to take up hedges with gold prices at $600 or the price at the time. The gold price then shot up leaving the miners very much on the loosing end.
I dont think the same applies at the moment. A gold price above $1600 allows even marginal gold mines to survive. A good hedge in these rocky times allows a certainty that the market wants.
If gold spikes up to the $1800 mark over the next few months I would very much like to see MYG lock in another 50,000 oz. Even if gold then goes over $2000 short term, removing the downside risk is far more benificial. The flip side is a gold price dropping below $1200 will kill most gold miners if they dont have a hedge.