Barrick Gold Getting Ready to H E D G E !!

John Thornton, ex- Goldman Sachs banker who next year takes over the helm at Barrick Gold, the world’s top gold miner, has suggested that hedging may once again be appropriate.

The mining companies were sold a bill of goods by the banks that they should always be hedging their product to lock in profits when gold was about $300. They lost tremendous upside in the 13 year rally. Naturally, like most unprofessional traders, they lifted their hedges to share in the new bull market. Then the high came in place and gold has crashed and burned since 2011.

The majority of the mines will once again hedge going into the low. They will have their short positions in place and end up with losses during the next rally as they did before.

[link to armstrongeconomics.com]

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