GFMS Urges Hedging

Gold miners should reconsider hedging - GFMS

For metals consultancy, Thomson Reuters GFMS’s Paul Walker, looking to hedge from a position of strength would serve miners well when prices do eventually fall.

Author: Christy Filen
Posted: Friday , 13 Apr 2012

JOHANNESBURG (MINEWEB) -

Global precious metals researcher, Thomson Reuters GFMS, in its recently released annual gold survey has forecast that the gold price will top US$2000/oz in the first half of 2013 and then see a plunge to US$1000/oz for an extended period.

A knee jerk reaction to this announcement was that the researcher was hedging its bets by covering the top and bottom of a price range.

MineWeb

Everyone seems to want to destroy the gold mining sector without realizing that at this juncture, taking a step back from the immediate concerns and not placing any restrictions on the gold price, save that your mining methods such as grade controls, geology, balance sheet have to be the cornerstone of discipline, not adverse speculation on where the gold price might be.

If this latest prediction is in any way wrong, you would destroy your business, and this seems to be in fact what everyone wants.

-F6