Recent gold hedging activity — a warning sign?

posted by
August 17, 2011
Casey Research
by Andrey Dashkov  
Posted in Commentary

"In the first quarter of 2011 (Q111), net gold hedging was reported by GFMS and Societe Generale. A gold mining company may hedge its production on expectations of falling gold prices in order to lock in high prices and possibly avoid losses. As gold hits one nominal high after another, is such behavior a sign that the bull market in gold is over? To answer that question, we had a look into Boliden’s (T.BLS) latest interim report." (08/16/11)

http://bit.ly/pYCVbd  

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