14
September
Hedging loses its lustre for gold
14 September 2009 The Financial Times
The gold industry’s legacy of forward sales could all but disappear by next year following the recent move by Canada’s Barrick Gold, the largest gold miner, to buy back its hedges. The size of the industry’s hedge book – a key factor in gold prices - is set to drop to a residual of less than 200 tonnes by end-2010, a 95% drop from 3,000 tonnes a decade ago, according to industry estimates. Bullion rose above $1,000 a troy ounce last week amid dollar weakness.
http://ftalphaville.ft.com/blog/2009/09/14/71586/hedging-loses-its-lustre-for-gold/
