update on flooding, page-90

JID

"To say 'leave hedging to the experts' is, IMO, naive. Gold is very manipulated in price and why would a miner want to be beholden to the whims of the bullion and central banks and the BIS."

I guess that was directed at me? I actually said....

"I think your either a hedger or your not. It's when the miners try to pick the market they usually get it wrong."

"Miners should mine gold and leave the trading to the experts."

The comment was more of a general opinion and not specifically directed at RRL

What I believe is that hedging can be a good thing if done for the right reason. i.e. as an insurance policy to gurantee a certain income

What I don't think is a good idea, is when a miner trys specifically to make money from Hedging or options.
i.e. they start trading (trying to pick) the market instead of sticking to their knitting. I don't believe miners have the expertice or the deep pockets to be traders.

Look at the trouble NCM got in when they had to unravel their hedge book a few years ago. Now when they should be hedged, they are not.