{"id":436798,"date":"2010-03-16T15:16:53","date_gmt":"2010-03-16T19:16:53","guid":{"rendered":"http:\/\/www.businessinsider.com\/socgen-despite-pullbacks-gold-miners-still-wont-hedge-2010-3"},"modified":"2010-03-16T15:16:53","modified_gmt":"2010-03-16T19:16:53","slug":"socgen-despite-pullbacks-gold-miners-still-wont-hedge","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/436798","title":{"rendered":"SocGen: Despite Pullbacks, Gold Miners Still Won’t Hedge"},"content":{"rendered":"

\"Gold<\/p>\n

According to a new report from Societe Generale, gold miners like Barrick Gold aren’t hedging against price fluctuations despite recent pullbacks in price.<\/p>\n

Sure you can lock in a price via a forward contract but that practice has apparently all but died in recent years.<\/p>\n

BullionVault<\/a>: Despite the Gold Price<\/a> hitting a new record-high monthly average in each of Oct., Nov. and Dec. 2009, “We have not observed a shift in the attitudes of [mining] producers towards hedging,” says GFMS in its latest quarterly report for Société Générale.<\/p>\n

“These views remain \ufb01rmly in line with the anti-hedging sentiment of prospective gold equity investors,” the report says.<\/p>\n

Fearing further price falls after the 20-year bear market of the 1980s and ’90s, the world’s major Gold Mining<\/a> companies had sold forward a total of 3,421 tonnes of production – as yet unmined – by mid-2001.<\/p>\n

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