Hedging is an advantage if it takes place during a bubble. If...

Hedging is an advantage if it takes place during a bubble. If you can pick the peak. Oil companies that hedged at $140pb last year are laughing now and can even make money selling their hedges (eg. Stuart Petroleum made money by doing this which was fortunate for them as they lost bucket loads of $'s with unsuccessful drilling). Although gold is likely to stay up higher than it is now it will most probably drop back after a peak as it did in 1980.